Business / Companies
FMB in consortium to buy Zimbabwe bank
06 May 2011 at 13:18hrs | Views
Malawi's FMB Bank is in a consortium of foreign banks to acquire 93 percent stake in Zimbabwe's Genesis Investment Bank as interest in that country's financial institutions rise with growth prospects, Business News has learnt.
The negotiations between Genesis and the Malawi Stock Exchange (MSE)-listed FMB follow a management buyout of a majority stake in the local merchant bank from ZHL Holdings Limited recently, according Zimbabwe's Daily News.
The paper quoted FMB's executive director Sean O'Neill as confirming the development. But O'Neill could not divulge more information, citing confidentiality agreements or undertakings.
"I can confirm that FMB has been exploring a number of opportunities to expand its regional footprint following the successful launch of its Botswana subsidiary, Capital Bank Limited," he was quoted as saying.
Under the deal, the paper says, FMB would acquire a majority stake in the Zimbabwe bank along with Kenya's Prime Bank Limited and Mount Hager of the Indian Ocean Islands.
FMB would acquire a 30 percent stake followed by Prime Bank at 14 percent and several other fragmented groups whose cumulative interest translates to 92.3 percent with the Zimbabwean investors holding the remainder, said the paper.
Zimbabwe's Genesis is part of a financial services group with interests in private banking, stock broking and venture capital, among other areas.
The bank also operates a Botswana-based outfit specialising in advisory, private equity, structured and commodity financing in Africa.
Officials at Genesis told the paper that the external investors have committed to inject $12.5 million into the ailing bank.
Discussions are said to be at an advanced stage, with Zimbabwe's competition authorities pondering over the proposed transaction.
FMB, whose shares on Wednesday were trading at K6.43 each, has 2.3 billion shares on issue with a market capitalisation of $98.6 m.
The bank, which offers a full range of banking services, including commercial, asset management, corporate finance and leasing and finance services, also has a 51 percent stake in Botswana's Capital Bank Limited.
The negotiations between Genesis and the Malawi Stock Exchange (MSE)-listed FMB follow a management buyout of a majority stake in the local merchant bank from ZHL Holdings Limited recently, according Zimbabwe's Daily News.
The paper quoted FMB's executive director Sean O'Neill as confirming the development. But O'Neill could not divulge more information, citing confidentiality agreements or undertakings.
"I can confirm that FMB has been exploring a number of opportunities to expand its regional footprint following the successful launch of its Botswana subsidiary, Capital Bank Limited," he was quoted as saying.
Under the deal, the paper says, FMB would acquire a majority stake in the Zimbabwe bank along with Kenya's Prime Bank Limited and Mount Hager of the Indian Ocean Islands.
FMB would acquire a 30 percent stake followed by Prime Bank at 14 percent and several other fragmented groups whose cumulative interest translates to 92.3 percent with the Zimbabwean investors holding the remainder, said the paper.
Zimbabwe's Genesis is part of a financial services group with interests in private banking, stock broking and venture capital, among other areas.
The bank also operates a Botswana-based outfit specialising in advisory, private equity, structured and commodity financing in Africa.
Officials at Genesis told the paper that the external investors have committed to inject $12.5 million into the ailing bank.
Discussions are said to be at an advanced stage, with Zimbabwe's competition authorities pondering over the proposed transaction.
FMB, whose shares on Wednesday were trading at K6.43 each, has 2.3 billion shares on issue with a market capitalisation of $98.6 m.
The bank, which offers a full range of banking services, including commercial, asset management, corporate finance and leasing and finance services, also has a 51 percent stake in Botswana's Capital Bank Limited.
Source - Business News
