AfrAsia Kingdom to rebrand

HARARE - Financial services group AfrAsia Kingdom Zimbabwe Limited (AKZL) is seeking shareholder approval to rebrand to AfrAsia Zimbabwe Holdings Limited (AfrAsia) following the departure of its founder Nigel Chanakira.

Daniel Makono, AKZL’s company secretary said the firm will seek the greenlight to rebrand from its shareholders at an extra ordinary general meeting (EGM) to be held on November 29, 2013.

“That, pursuant to and in accordance with the binding memorandum of agreement between Kingdom Bank Limited, AKZL, Crustmoon, AfrAsia Kingdom Holdings Limited, Nigel Chanakira, AfrAsia Holdings Limited and Charles Wawn dated September 5, 2013, the directors be and hereby authorised to do all that is reasonably necessary to change the name of the company and its subsidiaries…” he said.

Sibusisiwe Bango, the AKZL 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.

This comes after Chanakira sold his 30 percent stake in AKZL, as part of the company’s restructuring and recapitalisation exercise.

As part of the deal Chanakira will however buy AfrAsia Kingdom Zimbabwe Limited’s remaining interest in the Botswana-based offshore bank, Kingdom Bank Africa Limited (KBAL).

The reorganisation will see Chanakira completely going as a shareholder of AKZL and in the transfer of the AKZL’s 35,7 percent interest in KBAL.

The seasoned banker — who is stepping down as director of all AKHL and AfrAsia Kingdom Zimbabwe Limited entities with immediate effect of the restructuring — will however acquire the “Kingdom” Trademark from AKZL.

The Mauritius-based AfrAsia Holdings announced that it will immediately provide further liquidity support to AKZL and KBL, a $20 million rights subject to be led by AfrAsia.

Chanakira said the decision to sell his stake was a difficult one but he had decided to exit AKZL after considering his obligations in relation to the liquidity and capital requirements of the group as a whole.

He said he was persuaded by new and emerging opportunities that have been created in the financial services sector to pursue interests outside AZKL such as private equity investment.

“I have particularly been delighted to have been part of this Group which has and continues to be a respected player in the financial sector in Zimbabwe,” he said.

“However, in life sometimes one is confronted with major decisions that shape your future, and for me, this is that one moment.

“I will remain invested in the financial services sector through Botswana-based Kingdom Bank Africa Limited and will be exploring opportunities in Zimbabwe and the region.”Nigel Chanakira
Puzey & Payne is also a holder of a Peugeot dealership in the country.

The viability of new vehicles market has, in the recent past, been compromised by the influx of used vehicles mostly from Japan that land on the domestic market at hugely discounted prices compared to those of new cars.

Coupled with lack of flexible credit terms and stringent conditions for obtaining bank loans, buying a new vehicle is extremely difficult for the majority of Zimbabweans even those with modest incomes.

Comments (1)

Farewell to Chanakira. That was a noble move. Clearly the man realised that AfrAsia has the capacity of making kingdom a force to reckon...not only financially but because of their regional reach. AfrAsia's strength is in private and investment banking. Kingdom is somewhat not aligned to that niche. Could we expect to see Kingdom making changes to its business model????

Analyst - 12 November 2013

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