Shareholders approve FBC,StanChart deal
BUSINESS REPORTER
The proposed acquisition of Standard Chartered Bank Zimbabwe (StanChart) has been approved by the shareholders of the leading financial services group, FBC Holdings, paving the way for the deal to close.
All shareholders present at an extraordinary general meeting voted in favour of the acquisition of StanChart Zimbabwe and the entire beneficial interest in Africa Enterprise Network Trust by FBC, a stand-alone fund created by SCBZ shareholders to house any other local investments other than the investment in StanChart.
Additionally, the shareholders also approved the transfer of StanChart’s undertaking to FBC Bank Limited and gave the directors permission to implement the first and the second resolutions.
Under the agreement, the StanChart name will no longer be used by FBC Holdings . All of StanChart’s local employees would still be employed by FBC Holdings, and the two lenders will collaborate closely to ensure a smooth transition for their clients and employees.
The acquisition of StanChart comes more than a year after the multinational banking group said it was exiting seven markets including Zimbabwe.
According to the terms of the agreement, FBC Holdings will purchase all of the shares of StanChart, including the lender’s fully owned custodial services company, giving it a 100% ownership stake.
Additionally, the agreement states that FBC Holdings will buy a financial stake in Africa Enterprise Network Trust, whose principal asset is a 20.7% ownership stake in Mashonaland Holdings.
According to FBC Holdings CEO, John Mushayavanhu, the acquisition enables the group to boost its banking market share, clientele, and competitiveness in a banking environment that is rapidly changing.
He claimed that the two institutions’ combined strengths would help them “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.
