FBC Holdings Limited has disposed 7,31% of its issued share capital to a Mauritius-based company, Shore Cap II Limited, as part of strategic efforts to strengthen its financial position.
Gamma Mudarikiri
In a notice to shareholders the company said the sale constitutes 7,31% of the issued share capital of FBC Holdings Limited, and 87,31% of the company’s treasury shares acquired through the FBCH Share Buyback Scheme.
The transaction was undertaken on the Zimbabwe Stock Exchange on June 28 2013 at the current market price of 10c per share.
“The board of directors of FBC Holdings Limited would like to advise shareholders of the disposal of 49 149 688 ordinary shares accumulated under the FBCH Share Buyback Scheme, to Shore Cap II Limited for strategic reasons,” part of the notice reads.
According to the notice, Shore Cap II Limited, acquired the 7,3% stake through its fund manager, Equator Capital Partners LLC.
Shore Cap II Limited and Equator Capital Partners are particularly focused on banks which are involved with small-to-medium enterprises (SMEs) and regulated microfinance institutions in countries with developing and transitional economies.
Areas of mutually beneficial developmental interest to FBC Holdings Limited’s banking subsidiaries include capacity building in micro-lending and small business enterprises, underwriting methodologies, risk management and internal control systems as well as funding strategies, new product development and pricing strategies.
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Shore Cap II Limited is an international private equity company established and registered in the Republic of Mauritius, and a follow-on fund to Shore Cap International Limited that has invested in 15 banks which are involved with SMEs and regulated microfinance institutions between 2003 and 2008.
Its shareholders include the Asia Development Bank, European Investment Bank, International Finance Corporation, Credit Mutual Nord Europe, the Norwegian Microfinance Initiative, CoFund Microfinance BV CDC Group plc, Finnish Fund for Industrial Corporation, among others.
FBC bank last week announced that it had secured a $48 million loan facility from regional financial institutions.
The bank secured $40 million from African Export-Import Bank while the remainder $8 was drawn from PTA Bank.
The company’s shareholders last week at an extraordinary general meeting also approved the merger of the group commercial bank with its building society, increasing National Social Security Authority stake in FBC Holdings 36% up from 26%.
The merger is expected to enable the enlarged commercial bank to meet the Reserve Bank of Zimbabwe’s $50 million minimum capital thresholds by the end of this month.
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