After placing an official notification of its intentions to sell off its remaining 286 million units of shares in Barclays Africa Group, Barclays Bank plc has sold its majority shares to FMB Capital Holdings PLC (FMBCH).
The document released reads: Barclays Bank PLC has today announced the sale of its majority shareholding in Barclays Bank of Zimbabwe Limited (BBZ) to FMB Capital Holdings PLC (FMBCH). Completion of this transaction is subject to regulatory approvals, and is currently expected to conclude by the end of the third quarter (Q3) 2017.
The transaction will be effected by the sale by BBPLC of shares in Afcarme Zimbabwe Holdings (Pvt) Limited, which is a holding company of BBZ.
FMB is listed on the Malawi Stock Exchange. and the FMB group has two wholly owned subsidiaries incorporated in Malawi: The Leasing and Finance Company of Malawi Limited, a licensed financial institution engaged in deposit taking and asset finance, and FMB Capital Markets Limited, a licensed portfolio manager. The FMB group also has interests in Capital Bank Limited in Mozambique and Botswana, and First Capital Bank Limited in Zambia. This transaction will be the FMB group’s first operation in Zimbabwe.
The sale will result in all 700 employees, 25 retail branches and five corporate service centres becoming a part of the FMB group. This transaction will see a £292m reduction in RWA (Risk Weighted Assets).
Harry Harrison, Head of Barclays Non-Core, commented:
“I am pleased to say following today’s announcement, all of the operating businesses put into Barclays Non-Core are now either under new ownership or soon will be. We remain focused on closing Barclays Non-Core on 30 June, as part of the Group strategy to create a stronger, simpler Barclays.
“Barclays Bank Zimbabwe has an excellent reputation and I am confident FMB will continue to build on it. I want to thank our colleagues in Barclays Bank Zimbabwe for their continued hard work and commitment in serving our customers.”