FBC receives US$10.1 million refund from StanChart Zimbabwe acquisition

FBC Holdings Limited (FBCH) has announced that US$10.1 million has been returned to the company from the original US$34 million escrow deposit for the acquisition of Standard Chartered Bank Zimbabwe (SCBZ) and the Africa Enterprise Network Trust (AENT).

The refund brings the final purchase consideration for the acquisition to US$23.9 million, as disclosed by FBC Holdings in a statement. The acquisition was finalised on May 18, 2024.

As part of the acquisition, SCBZ has been rebranded as FBC Crown Bank, which will operate semi-autonomously as a subsidiary of FBC Holdings.

FBC Crown Bank will focus on wholesale banking for large corporate clients and high net worth individuals, while FBC Bank will continue to serve the consumer and SME market.

“FBCH is grateful to its shareholders and all relevant stakeholders for the invaluable support rendered in the consummation of the transaction. We are confident that this strategic acquisition will significantly enhance our shareholder value.

“We remain committed to creating long-term value for our shareholders and delivering exceptional service to our combined customer base,” Group Company Secretary Tichaona Mabeza stated in a statement.

FBC Chairman Herbert Nkala, last month, cited the strategic value of the acquisition, stating, “FBC Crown Bank will operate independently, retaining its banking license, and catering to premium clients.”

FBC CEO, Trynos Kufazvinei, added, “This acquisition has boosted our customer base, increasing our market share by 2-3%.”

The acquisition includes SCBZ’s investment arm, AENT, which holds a 20% stake in Mashonaland Holdings, a property developer.

“As you know, we acquired Africa Enterprise Network Trust (AENT) which owned 20% of Mashonaland Holdings. This is now within the group. It has buttressed our investment portfolio.

“Obviously, we will be looking at options to work together and also to unlock value on these investments,” Kufazvinei said.

FBC’s building society unit is developing properties in Zvishavane, Masvingo, and Hwange, potentially through a real estate investment trust (REIT).