ZIMBABWE Financial Holdings (Finhold) this week moved to curtail a major embarrassment after it emerged its acquisition of Intermarket Holdings had been irregular.
Finhold, led by banker Elisha Mushayakarara, was recently reporte
d in the press as having acquired a 51% stake in Intermarket. The stake had been previously held by the Reserve Bank of Zimbabwe.
Sources indicated Finhold, which released no circular to shareholders regarding the acquisition, was scurrying to rectify its blunder which could precipitate a suspension from the Zimbabwe Stock Exchange.
Sources indicated that the financial institution was now busy preparing a document for shareholders and could call for an extraordinary general meeting to seek authority for the acquisition of Intermarket.
Sources at Finhold said the group would now seek the authority to acquire the entire issued share capital of Intermarket in exchange for an unspecified amount of Finhold shares to Intermarket shareholders.
Businessdigest sources indicated that the process to rectify the group’s blunder, while likely to get backing from key shareholders, was also likely to come under attack from other shareholders.
Mushayakarara has already made key appointments at Intermarket Holdings subsidiaries.
Finhold is majority-owned by the National Social Security Authority (NSSA), a compulsory national pension scheme under the control of government.
NSSA holds 46% of the group’s issued share capital while government, which is the second largest shareholder, holds a 29% stake in the financial group.
Finhold’s subsidiaries are Zimbabwe Banking Corporation Limited, whose operational divisions are commercial bank Zimbank and Syfrets Corporate and Merchant Bank, and ZB Holdings, whose operational divisions include Syfam, an asset management firm, and Continental Capital, a venture capital company.
Intermarket operates a building society, a merchant bank, a discount house as well as a commercial bank. — Staff Writer.