Friday 02 June 2017

2 June 2017 - UK-based banking and financial services company Barclays Bank plc (NYSE: BCS) has agreed to sell its majority shareholding in Barclays Bank of Zimbabwe Ltd. to Malawi-based FMB Capital Holdings plc, the company said.

Completion of this transaction is subject to regulatory approvals, and is currently expected to conclude by the end of 3Q17.

The transaction will be effected by the sale by BBPLC of shares in Afcarme Zimbabwe Holdings Ltd., 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 Ltd., a licensed financial institution engaged in deposit taking and asset finance, and FMB Capital Markets Ltd., a licensed portfolio manager.

The FMB group also has interests in Capital Bank Ltd. in Mozambique and Botswana, and First Capital Bank Ltd. in Zambia. This transaction will be the FMB group's first operation in Zimbabwe.

This sale will result in all 700 employees, 25 retail branches and five corporate service centres becoming a part of the FMB group.

Barclays said the transaction will see a GBP 292m reduction in RWA (Risk Weighted Assets).