Malawian bank finalises purchase of Barclays Bank Zim

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Harare – Malawian
banking group First Merchant Bank Capital Holdings has obtained all approvals
to acquire the majority stake in Barclays Bank
Zimbabwe from British-owned bank Barclays Bank Plc.

Barclays Bank Plc completed
the sale of its majority shareholding in Barclays Bank
Zimbabwe to First Merchant Bank Capital Holdings at the end
of May. However, final completion of the deal was subject to regulatory approvals,
which have now been obtained.

Under the
transaction, an employee share ownership trust will get 15% of the 67.68% while Barclays Plc will retain a 10%
interest.

The employee share ownership trust deal went
through the Zimbabwe Stock Exchange on Thursday after 322 998 026 shares
sailed through under a negotiated deal at 2.64 US cents, with the closing price
at 2.65c.

The deal is however
at a discount to Barclays’ normal trading price on the ZSE of 8.2c.
Year-to-date Barclays has gained 156.3%.

The sale is part
of Barclay’s plans to exit African markets.

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