TRANSNATIONAL executive chairperson Nicolas Vingirai claimed this week that he has been kept in the dark about the CBZ Holdings (CBZH)-ZB Financial Holdings (ZBFH) merger deal, despite being one of ZBFH's largest shareholders.
This follows reports suggesting that the merger, which has been in the pipeline for some time, may face delays due to stringent conditions imposed by the Competition and Tariff Commission (CTC).
The proposed merger aims to create Zimbabwe’s largest financial institution, building on CBZH’s acquisition of First Mutual Holdings.
However, Vingirai stated he had no knowledge of the conditions set by the CTC or the reasons behind them.
"All I know about the proposed deal is what I have been reading in the media. We are not privy to the conditions set by CTC for the merger, nor the reasons thereof,” he said in an interview with Zimbabwe Independent.
“I know this might sound strange given the fact that I am supposed to be a significant shareholder in ZB Financial Holdings.”
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Last year, Vingirai told the Independent that Transnational Holdings had not received any formal notification from ZBFH about merger negotiations with CBZH.
The complex relationship between Vingirai and ZBFH, rooted in a long-standing shareholder dispute, raises further questions about the feasibility of the planned merger.
ZBFH is merging its ZB Bank and the ZB Building Society to meet capital requirements set by the Reserve Bank of Zimbabwe.
This week Vingirai also said the dispute remained unresolved due to the failure to implement a 2016 government-brokered settlement agreement.
He cited the failure to implement the settlement agreement that granted Transnational a 33% stake in ZBFH, though only 23,43% has been received to date.
Vingirai also pointed to the controversy surrounding Beverley Building Society (BBS), originally under Intermarket Holdings Limited (IHL), which he controlled. He said BBS’ transfer to CBZH was another unresolved issue hindering the merger.
In January 2007, CBZH announced its complete acquisition of BBS.
This followed IHL’s 2003 bid to acquire BBS, which led to IHL being placed under curatorship and the building society being acquired by CBZH under what Vingirai alleged were “questionable” circumstances.
The IHL bid, which included offshore payments estimated at US$2,7 million, faced allegations of externalisation, complicating matters further.
"However, we can confirm that the Intermarket — ZB dispute remains unresolved due to the failure to implement a 2016 government – brokered settlement agreement,” Vingirai said.
“This cannot be wished away, for to do so can only be perilous to the proposed merger. If you recall, Beverley Building Society is an Intermarket asset.
“It was transferred to CBZ Holdings under unclear circumstances. All these, and other issues of similar gravity have to be resolved if any merger between CBZ and ZB is to be consummated.”
Matilda Nyathi, group chief marketing and corporate affairs officer at CBZH, said all corporate actions the group “undertakes are executed following all relevant regulatory guidelines and with comprehensive due diligence and transparency throughout the process.”
She said a detailed statement will be released in “due time” to provide comprehensive information about the conditions set by the CTC.
“Our focus remains on delivering sustainable value to all our stakeholders and fostering long-term growth for the business,” Nyathi said.
ZBFH executive head of brand Emilia Mabika, had not responded to questions by the time of going to press.