AfrAsia pays Chanakira $12m

HARARE - Mauritius-based AfrAsia Bank Limited (AfrAsia) will pay prominent banker Nigel Chanakira $12 million following the disposal of his 30 percent stake in financial group AfrAsia Kingdom Zimbabwe Limited (AKZL).

The transaction awaits shareholders’ approval at an extraordinary general meeting to be held early November.

Chanakira divested from AKZL in September, disposing 289 133 648 shares he indirectly held through his family investment vehicle Crustmoon.

However, he will only get $2,5 million in cash.

“The total consideration payable by the company comprises $2,5 million cash and the balance through cessation of certain claims against loan debtors and related security assets held by Kingdom Bank Limited (KBL),” said AKZL.

Initially, AfrAsia held a 35 percent stake in AKZL, acquired in January last year through a $9,5 million deal.

As part of the deal, AKZL will in turn sell its remaining interest in the Botswana-based offshore bank, Kingdom Bank Africa Limited (KBAL) to Crustmoon.

The restructuring, when completed, will result in Crustmoon completely exiting AKZL and in the transfer of the group’s 35,7 percent interest in KBAL.

Following AfrAsia’s increased stake in AKZL — with the blessings of the Reserve Bank of Zimbabwe — Chanakira will step down as director of all AKZL entities with immediate effect, but will retain the “Kingdom” trademark from AKZL.

AKZL will be rebranded to AfrAsia Zimbabwe Holdings, Kingdom Bank to AfrAsia Bank and Kingdom Asset Management to AfrAsia Capital Management.

The deal will also result in restructuring of the board and management of AKZL and KBL, but AKZL chief executive Lynn Mukonoweshuro will retain her post at the helm of the group.

AfrAsia will also seek to inject $100 million through a rights offer and private placement which are subject to shareholder approval.

Sibusisiwe Bango, AKZL’s board chairperson recently said the restructuring in local operations will pave way for injection of capital into the group, which should see the strengthening of the company’s balance sheet in preparation for underwriting significant business into the future.

“The new branding will benefit greatly from the infusion of international banking products, experience and synergies that will result from the association with an international banking group,” she said.

Meanwhile in the 18 months to June 2013, the group posted a loss of $16 million compared to a profit of $782 031 for the year ended December 2011.

“The loss was largely from the commercial banking arm operations due to the staff voluntary separation exercise as well as significant impairment allowance on the bank’s loan book,” said Bango.

During the period under review, the group’s micro finance unit registered a profit of $3,7 million compared to $2 million in the prior year.

Kingdom Asset Management recorded a 100 percent increase in profit from $132 172 in the comparable period to $263 696 in June 2013.


Comments (4)

The departure of an ikon from this diverse financial institution. We wish him all the best in his future business endevours.

j chigs - 21 October 2013

May God grant Chanakira more wisdom as he moves to his next assignment. He is still a rising STAR in our nation

Ernest Machiri - 21 October 2013

Rainflo Technology (Pvt) Ltd Irrigation water reticulation engineers,Consultancy, designs ,boreholes, overhead irrigation, drip irrigation, pump experts- installation, repairs, trolleys (portable), pivots, pipeline survey and installation, garden irrigation, booster pumps,maintenance,surface irrigation, tanks and tank stands 0715415931

Farming Testimony - 22 October 2013

Once a pioneer always a pioneer and As for Nigel , The will of God will not take you or lead you to where the Grace of God cannot protect you ! .

Dr MaCkelve - 23 October 2013

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