BarclayS Bank Plc says the disposal of Barclays Zimbabwe to Malawi’s First Merchant Bank (FMB) will not result in job losses, as the group will retain all the employees and branches.
BY FIDELITY MHLANGA
The United Kingdom-based financial institution, which held 67,68% shareholding in the local unit, last year announced it was disposing of its African assets, including in Zimbabwe, to focus on British and American markets.
“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 £292 million reduction in risk weighted assets,” Barclays Bank said in an emailed statement last week.
Barclays Plc said the transaction was subject to regulatory approvals expected to be concluded in the third quarter of 2017.
“Barclays Bank PLC has today (June 1) announced the sale of its majority shareholding in Barclays Bank of Zimbabwe Limited to FMB capital holdings PLC. Completion of this transaction is subject to regulatory approvals and is currently expected to conclude by the end of the third quarter 2017,” the financial institution said.
This transaction will be the FMB group’s first operation in Zimbabwe.
FMB is listed on the Malawi Stock Exchange. The FMB group has two wholly-owned subsidiaries incorporated in Malawi.
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The entities are 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 has interests in Capital Bank Limited in Mozambique and Botswana and First Capital Bank Limited in Zambia.
Barclays Bank Zimbabwe, alongside the Egyptian business, was not part of the 2013 deal that saw Barclays Africa, formerly Absa, acquiring eight African operations from its parent company due to high local political risk.
Harry Harrison, head of Barclays non-core activities, said all their non-core activities would be closed by end of June.
“I am pleased to say following today’s announcement, all of the operating businesses put into Barclays non-core are now under new ownership or soon will be. We remain focused on closing Barclays non-core on June 30, as part of group’s strategy to create a stronger, simpler Barclays,” he said.
