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Barclays sells Zim stake to Malawi bank

Harare – UK-based Barclays Bank has agreed to sell its stake in Barclays Bank of Zimbabwe to First Merchant Bank of Malawi (FMB), as part of its plans to exit African markets.

Barclays Bank of Zimbabwe (BBZ) confirmed the transaction on Friday.

In a cautionary statement released to the media, Barclays Bank Zimbabwe advised its shareholders that an agreement has been reached to sell the stake to FMB of Malawi.

“Further to the cautionary statement on 12th May 2017 following negotiations between Barclays Bank Plc and FMB Capital Holdings an agreement has been signed, pursuant to which FMB will acquire BB Plc’s majority shareholding in BBZ.”

BBZ cautioned that the transaction is still subject to certain terms and conditions. 

“Barclays Bank Plc and FMB are in the process of fulfilling the conditions precedent to the transaction, which will include, but (are) not limited to, approval of the Reserve Bank of Zimbabwe.

“Further details regarding this transaction will be made available in the circulars of BBZ and FMB to be published in due course.” 

The agreement may also be subject to Zimbabwe’s indegenisation and economic empowerment laws, which require a 51/49 ownership structure in favour of locals.

BBZ, which is also listed on the Zimbabwe Stock Exchange, has more than 1 000 workers and a countrywide network of 38 branches.

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