Barclays Zimbabwe deal sealed

Source: Barclays Zimbabwe deal sealed | The Financial Gazette October 19, 2017

By Staff Reporter

BRITISH lender Barclays Plc on yesterday sealed the disposal of its Zimbabwe unit to Malawi’s FMB Capital Holdings (FMBCH) after shares worth $8,5 million changed hands on the Zimbabwe Stock Exchange.

In a statement today, Barclays Bank Zimbabwe (BBZ) announced that FMBCH had successful acquired a majority shareholding in Afcarme Zimbabwe Holdings (Pvt) Limited, the holding company for BBZ from Barclays Bank PLC.

The completion of this transaction comes after all statutory and regulatory requirements were fulfilled. The FMB group has banking operations in Malawi, Mozambique, Zambia and Botswana.

The move sees FMBCH acquiring a 42 percent shareholding in BBZ with Barclays PLC retaining a 10 percent stake (employees hold 15 percent through an Employee Share Ownership Trust and the remaining 33 percent are listed on the ZSE).

“Despite the change of ownership both FMBCH and Barclays have stressed that it’s ‘business as usual’ with no immediate changes anticipated to its service offering and network. For the first 12 months after conclusion of the deal, the bank will continue to operate under the Barclays brand with the FMBCH brand being introduced over a subsequent two year period,” said BBZ.

Commenting on the development, BBZ board chairman, Antony Mandiwanza said: “The completion of this transaction marks an important juncture in the history of Barclays Bank Zimbabwe. It is testament to the successful franchise that the institution has become, particularly since dollarisation and in the current challenging macroeconomic environment, as evidenced by our 2017 half year results. ”

This transaction follows FMB’s recent acquisition of Opportunity International Group’s Malawi operations, Opportunity International Bank Malawi.

FMB is listed on the Malawi Stock Exchange and has two wholly owned subsidiaries incorporated in Malawi – The Leasing and Finance Company of Malawi Limited, a licensed financial institution engaged in deposit taking and asset finance, and FMB Capital Markets Limited, a licensed portfolio manager.

The Group also has interests in Capital Bank Limited in Mozambique and Botswana, and First Capital Bank Limited in Zambia with total assets (at the end of June 2017) of US$496 million. This transaction will be the FMBCH’s first operation in Zimbabwe.

FMBCH has a conservative banking philosophy with safeguarding of depositor funds being at its core. This is evidenced by its high levels of liquidity, strong capital adequacy and conservative lending policy. For instance, the Group’s liquidity position and capital adequacy has consistently remained above 55% and 20% for the past five years and its NPLs were at 2,7 percent as at Decermber 31 2016 despite adverse market conditions.

FMB Chairman, Hitesh Anadkat said the transaction marks a significant milestone in the group’s steps to becoming a truly African bank offering financial solutions to the region.

“We share many of the same values as our colleagues at Barclays and we will continue to create meaningful value for all our stakeholders customers, employees, investors and the Zimbabwean community at large,” said Anadkat.

Anadkat said FMB had a strong track record which demonstrates prudent financial management, sound operating platforms as well as the ability to respond to market opportunities with relevant product offerings that meet customer demand.’

“The Group has a strong management team with a blend of experienced bankers from leading global and regional banking institutions coupled with local talent. The Group’s Board of Directors also comprises members with extensive experience in international/regional banking, accounting, law and investment banking. The Group would continue to pursue its conservative approach to banking with BBZ but would also seek to enhance the product and service offering by leveraging on BBZ’s existing infrastructure/skills as well as FMBCH’s regional expertise,” he said.