Advertisement
Business

Inside FMB, Barclays deal

Advertisement

Malawi Stock Exchange-listed FMB has confirmed making an agreement with Barclays to buy 52 percent stakes in Barclays Zimbabwe.

FMB Group Managing Director Dheeraj Dikshit said the deal, which is subject to regulatory approvals, will be handled in two phases.

Dikshit said the first phase will see FMB acquiring 42 percent stake in the Zimbabwe entity and is expected to be concluded by the end of the third quarter of 2017.

Advertisement

He said the second phase will see FMB buying the remaining 10 percent stake in the bank over the next three years.

Currently, Barclays owns 67 percent stakes in Barclays Zimbabwe with the remaining 33 percent being owned by minorities.

Dikshit said Barclays intends to sell 15 percent of its shareholding to the bank’s employees through an employee share ownership scheme.

Advertisement

He could, however, not disclose the value of the deal, believed to be in tens of millions of dollars.

“I can’t disclose the value. It is between the buyer and the seller,” Dikshit said.

He was quick to point out that the acquisition of controlling stakes in Barclays Zimbabwe will give his bank a strong regional presence.

Currently, FMB is operational in Malawi, Botswana, Zambia and Mozambique.

In a statement on Friday, Barclays said the sale will result in all 700 employees, 25 retail branches and five corporate service centres becoming part of the FMB Group.

Head of Barclays Non- Core Harry Harrison said the transaction will see a £292 million reduction in Risk Weighted Assets.

“I am pleased to say, following today’s announcement, all of the operating businesses put into Barclays Non-Core are now either under new ownership or soon will be. We remain focused on closing Barclays Non-Core on 30 June, as part of the Group strategy to create a stronger, simpler Barclays.

“Barclays Bank Zimbabwe has an excellent reputation and I am confident FMB will continue to build on it. I want to thank our colleagues in Barclays Bank Zimbabwe for their continued hard work and commitment in serving our customers,” Harrison said.

Barclays is a transatlantic consumer, corporate and investment bank offering products and services across personal, corporate and investment banking, credit cards and wealth management, with a strong presence in two home markets of the UK and the US.

With over 325 years of history and expertise in banking, Barclays operates in over 40 countries and employs approximately 120,000 people.

Facebook Notice for EU! You need to login to view and post FB Comments!
Advertisement
Tags
Show More
Advertisement

Related Articles

Back to top button
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker