via Chanakira sells AfrAsia Kingdom Stake | The Zimbabwean by Clemence Machadu
Nigel Chanakira, the founder and non-executive director of Afrasia-Kingdom Zimbabwe Limited (AKZL), has sold his 30 percent stake in AKZL, as part of the company’s restructuring and recapitalization exercise.
“The key components of the restructuring and recapitalization are the decision by the founder of Kingdom Mr. Nigel Chanakira to dispose of his 30% indirect interest in AKZL,” said the company, in a statement.
Chanakira will however buy AKZL’s remaining interest in the Botswana-based offshore bank, Kingdom Bank Africa Limited (KBAL). The restructuring will see Chanakira completely exiting as a shareholder of AKZL and in the transfer of the AKZL’s 35.7% interest in KBAL. Mr. “Chanakira will also step down as director of all AKHL and AKZL entities with immediate effect of the restructuring. Mr. Chanakira will however acquire the “Kingdom” Trademark from AKZL,” said the statement.
AfrAsia Holdings has further announced that it will immediately provide additional liquidity support to AKZL and KBL, a US$20 million rights issue to be to be led by AfrAsia. The restructuring will also be followed by the rebranding of AfrAsia Kingdom Zimbabwe Limited as “AfrAsia Zimbabwe Holdings Ltd”; Kingdom Bank Ltd as “AfrAsia Bank Ltd”; and Kingdom Asset Management (Pvt) Ltd as “AfrAsia Capital Management (Pvt) Ltd.” The board and management of AKZL and KBL, will also be restructured. It is however not yet clear what prompted the restructuring exercise and how AfrAsia Holdings will meet the indigenization regulations afterwards.
“I have particularly been delighted to have been part of this Group which has and continues to be a respected player in the financial sector in Zimbabwe. However, in life sometimes one is confronted with major decisions that shape your future, and for me, this is that one moment,” said Mr Chanakira, commenting on the developments.
James Benoit, the Chief Executive Officer of AfrAsia, stated that “The restructuring and recapitalization of AKZL is confirmation of our commitment to Zimbabwe and our belief in its recovery potential and the key role that it can play in regional development going forward. Kingdom Bank under AKZL already represents one of the best banking franchises in the country and we are committed to further developing it into the top bank in Zimbabwe, which we are confident that we can do given that we now expect a more stable business environment going forward. I would also like to place on record our thanks to H.E. President Robert Mugabe and to Reserve Bank Governor Gideon Gono and his team for their support”