Mauritian firm snaps 7% FBC stake

HARARE – Listed financial services group FBC Holdings (FBCH) has disposed of a 7, 31 percent stake to a Mauritius-based international private equity company ShoreCap II Limited for $4, 9 million.

The group plans to channel the undisclosed proceeds towards boosting its micro-finance business.

“The sale constitutes 7,31 percent of the issued share capital of FBCH and 87,31 percent of the company’s treasury shares acquired through the FBCH shares buyback scheme,” said the group’s company secretary Tichaona Mabeza.

This comes as FBCH’s chief executive John Mushayavanhu last week told shareholders at an annual general meeting that an American investment management firm and a Mauritius-based company had expressed interest to buy a nine percent stake in the group.

FBCH hopes to mutually benefit from the deal as it shares developmental interest with ShoreCap such as micro-lending and small business enterprises capacity building, underwriting methodologies, risk management and internal control systems.

This is also in addition to funding strategies, new product development and pricing strategies.

“ShoreCap and their fund manager, Equator Capital Partners are particularly focused on banks which are involved with SMEs and regulated micro-finance institutions in countries with developing and transitional economies,” said Mabeza.

FBCH decided to scout for an equity partner after disposal of its 58 percent stake in non-core business Turnall Holdings Limited hit a brickwall.

Mushayavanhu also pointed out that the group had secured nearly $50 million in credit lines from international money lenders with $8 million already drawn down from the Preferential Trade Area Bank (PTA).

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