Harare - First Capital Bank, formerly Barclays Bank Zimbabwe, has resolved to put on hold unbundling of non-core banking assets set for listing on the Zimbabwe Stock Exchange (ZSE).

In a withdrawal of Cautionary statement published through ZSE, First Capital Bank had this to say:

“Further to the Cautionary Statement issued by the board with effect from 14 September2018 and last renewed on 31 December 2018, the Board has advises shareholders and members of the public that the proposed unbundling the Company’s non-core banking properties into a separate entity to be listed on the ZSE has been placed on hold.”

The primary assets include its 50 percent shareholding in property holding company called Makasa Sun (Private) Limited.

Last October, Barclays plc concluded a transaction in which it disposed an effective 42,7 percent of its shareholding in Barclays Bank of Zimbabwe to the Mauritius registered FMB Capital Holdings, which is now the major shareholder in BBZ and Barclays plc has retained 10 percent shareholding.

First Merchant Bank (FMB) is a financial institution created in 1995, and is listed on the Malawi Stock Exchange, while it also has equity interests in banking operations in Botswana, Mozambique and Zambia. Barclays Bank Zimbabwe was established in 1912, and has operated incessantly since.

Before the sale, Barclays Plc held 67,68 percent in the Zimbabwean subsidiary but had classified it as non-core.

Last year, it was reported that Barclays plc will not get full cash for the transaction but would be invested in FMB through an instrument, which it will sell later or over time.

Barclays Plc has also announced plans to sell a further 22 percent stake in South Africa’s Barclays Africa Group Ltd, a holding worth about $2 billion at current price, as part of the United Kingdom bank’s plan to shrink its operations and bolster capital strength.

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