By Oliver Kazunga
First Capital Bank, formerly Barclays Bank Zimbabwe has indefinitely suspended the proposed unbundling of non-core assets for listing on the Zimbabwe Stock Exchange (ZSE).
In a statement regarding the withdrawal to list the bank’s non-core banking properties, the financial institution said:
“Further to the cautionary statement issued by the board on September 14, 2018 which was last renewed on December 31, 2018, the board advises shareholders and members of the public that the proposed unbundling of the company’s non-core banking properties into a separate entity to be listed on the Zimbabwe Stock Exchange has been placed on hold.”
First Capital Bank said shareholders and the banking public were therefore advised to take note of the withdrawal of the cautionary statement issued earlier regarding the proposed listing.
In a cautionary statement relating to the proposed listing of non-core banking assets, First Capital Bank indicated that its board had approved, subject to regulatory and other approvals, including but not limited to the final approval by the Reserve Bank of Zimbabwe, the unbundling of the company’s non-core banking properties into a separate entity to be listed on the ZSE.
The bank’s primary assets included its 50 percent shareholding in property holding company called Makasa Sun (Private) Limited.
In 2017, Barclays plc concluded a transaction in which it disposed an effective 42,7 percent of its shareholding in Barclays Bank of Zimbabwe to the Mauritius registered FMB Capital Holdings, which is now the major shareholder in BBZ and Barclays plc retained 10 percent shareholding.
First Merchant Bank (FMB) is a financial institution established in 1995, and is listed on the Malawi Stock Exchange and also has equity interests in banking operations in other regional countries such as Mozambique, Zambia and Botswana.
Barclays Bank Zimbabwe was founded in 1912, and has operated in the country since then.
Before the sale, Barclays Plc held 67,68 percent in the local subsidiary but had classified it as non-core.
In the meantime, Barclays Plc has indicated plans to sell a further 22 percent stake in South Africa’s Barclays Africa Group Ltd, a holding worth about $2 billion at current price as part of the United Kingdom headquartered bank’s plan to reduce its operations and bolster capital strength. The Chronicle