FINANCIAL group, FBC Holdings Limited’s (FBCH), purchase price of Standard Chartered Bank Zimbabwe (SCBZ) and its investment vehicle has been reduced by nearly 30% to US$23 896 650, after final appraisals.
Initially, FBCH, through FBC Bank Limited, deposited a sum of US$34 million with Standard Chartered Bank UK, the subsidiary of the British-based financial group Standard Chartered PLC which owned the then Standard Chartered Bank Zimbabwe.
The amount was based on the indicative net asset value of the bank using a “proforma completion balance sheet” computed as of March 31, 2023.
The money would see FBCH acquiring the bank and its investment vehicle, Africa Enterprise Network Trust, a stand-alone fund created by the shareholders to house any other local investments from Standard Chartered PLC after the multinational banking group announced in 2022 of plans to divest from seven markets including Zimbabwe.
In a statement yesterday, FBCH said the final purchase price of Standard Chartered Bank Zimbabwe and AENT were less US$10 103 350 from the US$34 million that had been deposited.
“Further to previous communications and the resolutions of the extra-ordinary general meeting of the company held on the 28th of September 28 2023, the board of directors of FBC Holdings Limited wishes to announce to shareholders, the investing public and all stakeholders that the final purchase consideration for the acquisition of Standard Chartered Bank Zimbabwe and the entire beneficial interest in the Africa Enterprise Network Trust was US$23 896 650,” FBCH said.
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“As a result, US$10 103 350 has been returned to FBCH from the original US$34 million lodged into the escrow account at transaction initiation. The purchase consideration has been satisfied in accordance with the terms of the sale and purchase agreement.”
Standard Chartered Bank Zimbabwe was rebranded to FBC Crown Bank Limited on August 17 after obtaining regulatory approvals.
“FBCH is grateful to its shareholders and all relevant stakeholders for the invaluable support rendered in the consummation of the transaction,” FBCH said.
“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.”
In its half year results for the period ended June 30, 2024, FBCH revealed that the group’s balance sheet strengthened, following the purchase of SCBZ, with total assets reaching ZiG9,99 billion.
FBCH has now shifted its focus to driving business growth, in line with the group’s market segmentation.
“The group is currently undertaking a capital rationalisation exercise in line with the group’s capital allocation framework, following the acquisition of Standard Chartered Bank Zimbabwe,” FBCH chairperson Herbert Nkala said last month.
“Our strategy focuses on efficient capital allocation, in line with the risk-return profile of each business and ensuring compliance with minimum regulatory capital requirements.”