FBC Holdings Limited’s acquisition of 100 percent shareholding in Standard Chartered Bank Zimbabwe Limited has been approved by the Reserve Bank of Zimbabwe (RBZ) Registrar of Banking Institutions.
In April last year, Standard Chartered PLC announced its decision to divest from a number of markets including Zimbabwe.
Consequently, Standard Chartered Bank Zimbabwe Limited was put up for sale.
It is against this background and in line with FBCH’s strategy of continuously growing the business organically and through mergers and acquisitions if opportunities arise that FBCH board in a meeting held in June 2022 resolved to submit a bid for the acquisition of SCBZ.
A rigorous bidding process ensued culminating in the Group’s binding offer being accepted by the shareholders of SCBZ and the subsequent execution of the sale and purchase agreement.
In a statement, RBZ said the approval will also result in FBC Holdings Limited taking control of Standard Chartered Bank Zimbabwe Limited as defined in terms of the Banking Act [Chapter 24:20].
“The bank wishes to advise the banking public that the Registrar of Banking Institutions approved FBC Holdings Limited’s acquisition of 100 percent shareholding (significant interest) in Standard Chartered Bank Zimbabwe Limited which also results in FBC Holdings Limited taking control of standard Chartered Bank Zimbabwe Limited as defined in terms of the Banking Act [Chapter 24:20]
“The bank also advises the public that approval has been granted by the Registrar of Banking Institutions for FBC Holdings Limited to be registered as a controlling company for Standard Chartered Bank Zimbabwe Limited,” reads the statement.
In June, the two financial institutions entered into an agreement for 100 percent acquisition subject to regulatory approval.
As part of the agreement, FBCH will also acquire the economic interest in Africa Enterprise Network Trust whose main asset is a 20,7 percent shareholding in Mashonaland Holdings Limited. (MHL).
Also, FBCH would continue to employ all of its local employees and the two institutions will work closely to provide a seamless transition for its clients and staff.
Under the proposed transaction, FBCH shall not retain the SCBZ name.
According to FBCH, the benefits of the approved transaction include the creation of a larger, diversified banking portfolio with a combined asset base, customer base and geographical reach that is more resilient and competitive in the face of industry wide challenges such as regulatory compliance and digitisation.
Benefits also include leveraging the two banking entities’ respective strengths, capabilities and competences to create dynamic banking operations allowing the merged entity to enhance its loan underwriting capacity and enabling the group to serve a broader range of customers across different market segments. – Chronicle