BUSINESS REPORTER
The acquisition of Standard Chartered Bank Zimbabwe (StanChart) by FBC Holdings is in the final leg of regulatory approvals and is expected to be completed before year-end.
The two lenders agreed on the deal last month.
FBC Company secretary, Tichaona Mabeza said the group was putting together requisite documents for approval by relevant regulatory authorities.
“…Relating to the Sale and Purchase Agreement for the acquisition of Standard Chartered Bank Zimbabwe, the board of directors of FBC Holdings Limited wish to inform its shareholders and the investing public that the company continues to put together requisite documentation for the approval of the transaction by all relevant regulatory authorities,” Mabeza said.
He added: “The transaction, if successfully concluded, may have a material impact on the value of the company’s securities.
Accordingly, shareholders and the rest of the investing community are urged to continue exercising caution and to consult their investment advisors when dealing in the company’s securities.”
The acquisition of StanChart comes more than a year after the multinational banking group said it was exiting seven markets including Zimbabwe.
Under the agreement, FBCH will acquire 100% of the shareholding in StanChart and by extension, the custodial services business that is wholly owned by the lender.
The agreement also stipulates that FBCH will purchase a financial interest in Africa Enterprise Network Trust, whose main asset is a 20.7% ownership stake in Mashonaland Holdings.
The acquisition, according to FBCH CEO John Mushayavanhu, allows the group to increase its banking market share, clientele, and competitiveness in a banking environment that is rapidly changing.
He said the combined strengths of the two institutions would enable “us to better respond to the ever-changing requirements of our clients”.
In a trading update for the quarter to March 31, 2023, FBC Holdings Limited’s total income was ZWL$49bn.
The group kept a conservative approach to cost management, resulting in a cost-to-income ratio of 41% for the time period under consideration.
Subsequently, the group recorded a profit before tax of ZWL$28.79bn and an after-tax profit of ZWL$25.4bn.
The group’s total assets were valued at ZWL$495.4bn, with ZWL$90.5bn in underlying shareholder funds, and a 28% return on equity.
