- Cavmont Bank wholly owned by Cavmont Capital
- Potential transaction relates to the selling of 100% stake to Access Zambia
- Cavmont Capital uncertain of a transaction agreement
Harare – Cavmont Capital Holdings Zambia PLC (CCHZ), a commercial registered bank and holding company of Cavmont Bank Limited has entered into discussions regarding the sale of Cavmont Bank Limited.
In a cautionary announcement the CCHZ said, “Shareholders are advised that Cavmont Capital Holdings Zambia PLC (“CCHZ”) hereby announces that it has entered into exclusive discussions with Access Bank Zambia Ltd. (“Access Zambia”) regarding a potential transaction between Access Zambia and Cavmont Bank Ltd., a wholly owned subsidiary of CCHZ.”
The potential transaction relates to the sale of 100% of CCHZ’s interest in Cavmont Bank Ltd to Access Zambia.
Cavmont Bank was established in 2004 through the merger of Cavmont Merchant Bank Limited and New Capital Bank Plc.
Cavmont Capital said there can be no certainty that a transaction will be agreed, nor as to the terms of any such agreement.
CCHZ will therefore update the market as appropriate and in accordance with its legal obligations and the Lusaka Securities Exchange Listings Requirements.
Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a full announcement is made.
For the half year period ended 31 December 2019 the Cavmont Capital recorded a net interest income growth of 18% on account of reconstitution of the underlying loan book into higher yielding portfolios during the period.
The Bank highlighted that the growth compensated for the drop in non-interest income over the period with an overall increase of 6% in operating income inclusive of impairment charges.
Operating expenses declined by 8% from prior year following a restructure exercise carried out during the period leading to a decrease in staff levels and the closure and consolidation of some branches.
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