Monday, 12 September 2011

FNB UNDER FIRST RAND SOUTH AFRICA ACQUIRES 96% SHARE STAKE INTO FINANCE BANK ZAMBIA AT COST OF K27BILLION

first national bank zambia has acquired about 96percent of the total assets of finance bank zambia under the purchase and assumption transaction leaving the bank of zambia with 4percent at a total value of 27billion kwacha.
bank of zambia governor dr caleb fundanga disclosed this to journalists at a media briefing this afternoon in lusaka stating that all the minority shareholdings’ shares will be sorted out and determined by the courts of law.
dr fundanga further says the purchase and restructuring of the finance bank  zambia limited involves purchasing of certain  assets and assuming certain liabilities of finance bank zambia limited and operations of the 34 branches, 16agencies and 61atms currently serviced by finance bank.
the boz governor also  says the central bank engaged deloitte llp of london on the proposed restructuring adding that apart from fnb expressing interest, other institutions such as first alliance bank, exim bank of tanzania, i and m bank of kenya and quantel bank also expressed their interest to acquire the bank `s assets.
meanwhile dr fundanga has  stated that the acquisition will achieve certain objectives such as bringing sound business practices, financial stability and protecting  the zambian financial system.
speaking at the same briefing first national bank (fnb) chief executive officer sarel van zyl said his institution will maintain finance bank’s existing geographic footprint across the country, offer employment to all financĂ© bank staff and inject significant foreign direct investment into zambia.
fnbz’s ultimate parent company is first rand limited of south africa and is listed on the johannesburg stock exchange with total assets of and equity amounting to $105.6billion and $8.8billion kwacha respectively.
the acquisition of finance bank by fnb zambia will mean that it will become the 5th largest commercial bank in the country apart from other banks such as barclays and standard chartered.
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