Barclays Zim offloads tourism unit

HARARE - Listed Barclays Bank of Zimbabwe (Barclays) is set to dispose its 50 percent stake in tourism concern Makasa Sun (Pvt) Ltd (Makasa) for $14,6 million.

The Barclays Plc subsidiary said it is in the process of finalising the transaction.

Makasa owns a hotel in the Victoria Falls resort town.

“...the Bank is in the process of finalising a transaction for the disposal of its 50 percent interest in Makasa Sun (Private) Limited,” said Barclays.

The bank, however, did not give reasons for the exit, but said $7,5 million was going to be received within 30 days of concluding the deal, on the conditions precedent from which selling costs shall be paid.

“The balance to be paid by instalments shall incur interest charges which will be reviewed annually in reference to an agreed interest rate benchmark. The proceeds of the sale shall be applied towards other banking assets,” the group said, stating that the balance was to be paid over a period of up to 15 years.

According to Barclays, the value of the net assets which are subject of the transaction was previously reported at $14,6 million as at June 30, 2015.

“There will be no significant effect on the net assets per share of the company except to the extent of returns that will be generated from the investment of the proceeds going forward…

“The net consideration to be paid for the bank’s interest being sold is $14,55 million. The parties to the transaction are now in the process of fulfilling conditions precedent stated in the agreement of sale,” the bank said.

In 2001, beverages producer Delta Corporation sold off its interest in Makasa Sun as part of a move to concentrate on its core business.

Meanwhile, Barclays posted a profit after tax of $1,3 million for the half year to June 2015 after recording below target income growth.

The bank’s cost to income ratio closed the period at 89 percent compared to 86 percent for the 2014 comparative period.

According to the institution’s chairman, liquidity and capital base remain strong with plans to continue planned maintenance work for some properties.

The bank — which meets the current minimum central bank capital requirements — registered a total capital adequacy ratio of 18 percent ahead of the regulatory minimum of 12 percent in the half-year as the liquidity ratio closed the period at 48 percent, ahead of the regulatory minimum of 30 percent.

 

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