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Get Bucks mulls restructuring

LIVINGSTONE MARUFU

LISTED financial concern GetBucks Microfinance Bank Limited (GBZW) is set to embark on corporate restructuring which will result in the establishment of a new entity called MBC Holdings as the company moves to consolidate its operations.

The development, according to the company, is meant to improve operating efficiencies. The move is also tipped to attract investment to the company and help its growth.

In a cautionary statement yesterday, GetBucks director Patrick Mashinga said extreme caution should be exercised when the company is making such a big transaction.

“Shareholders and members of the public are advised that GetBucks Microfinance Bank Limited or the company is contemplating a corporate restructuring of the company, establishing a holding company, MBC Holdings that will own GetBucks Zimbabwe as a wholly owned subsidiary and will result in the delisting of the company and listing of MBC holdings.

 “The transaction, if successfully concluded, may have a material effect on the price of company’s shares,” Mashinga said.

 In the first quarter ended September 30, GetBucks’ loan book grew by 80% to ZWL$43.8m from ZWL$24.4m in June. The bank also saw total deposits increasing to ZWL$8.3m in the first quarter to September 30 from ZWL$2.9m realised in the quarter to June 30.

In a trading update, Mashinga said the bank continued to focus on growth of its customer base with a fully functional banking platform.

Total assets increased by 63% to ZWL$112.7m during the period under review from ZWL$69.3m in June, due to investments in financial assets, increase in cash and cash equivalents and revaluation of investment property. Shareholders’ equity increased by 53% to ZWL$52.2m driven by revaluation gains in investment property and profitability.

The company also held a rights issue in July and raised ZWL$5m. The cost to ratio from the quarter was 47%. GetBucks plans to roll out a new model that will see the serving customers through agents as it seeks to expand its footprint.

The bank will also leverage on technology to deliver services and embed its products with various retailers and service providers.

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