First Capital Bank, formerly Barclays Bank Zimbabwe, is set to list its unbundled non-core assets on the Zimbabwe Stock Exchange (ZSE).
In a cautionary statement, ZSE advised that First Capital Bank board of directors have approved the unbundling of the bank’s non-core properties.
“Shareholders are advised that the First Capital Bank Limited board of directors has 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 Zimbabwe Stock Exchange,” it said.
“The primary asset included is the company’s 50 percent shareholding in a property holding company called Makasa Sun (Private) Limited.”
In this light, shareholders and the investing public have been advised to exercise caution and should consult their professional advisors when dealing with the company’s shares. Last October, 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 has retained 10 percent shareholding.
First Merchant Bank (FMB) is a financial institution created in 1995, and is listed on the Malawi Stock Exchange, while it also has equity interests in banking operations in Botswana, Mozambique and Zambia. Barclays Bank Zimbabwe was established in 1912, and has operated incessantly since.
Before the sale, Barclays Plc held 67,68 percent in the Zimbabwean subsidiary but had classified it as non-core.
Last year, it was reported that Barclays plc will not get full cash for the transaction but would be invested in FMB through an instrument, which it will sell later or over time.
Barclays Plc has also announced 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 bank’s plan to shrink its operations and bolster capital strength.