Malawian bank finalises purchase of Barclays Bank Zim

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.

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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.