A MAJOR restructuring exercise is in the offing at the Commercial Bank of Zimbabwe (CBZ) which trades as Jewel Bank as top executives currently heading its operations are tipped to take charg
e at the newly-formed holding company, CBZ Holdings.
Current chief executive officer and managing director of CBZ Bank, Nyasha Makuvise, is widely tipped to take charge of the holding company.
Those likely to be promoted under the new structure include company secretary Chipo Chasi.
Chasi is set to assume the new role of group company secretary and Josh Malherbe the bank’s finance director.
The new structure will require that the holding company have a separate chairman from the banking division.
Currently, the bank’s operations are chaired by Richard Wilde who is widely expected to take charge of the board, creating a need to appoint a new chairperson for the commercial bank.
Makuvise could not be drawn into disclosing the proposed heads of the holding company.
“The creation of the holding company is a process and staff and heads of the holding company will be appointed as and when the need arises. All we have done is complete the first stage in the process by listing the holding company and the rest will follow,” Makuvise said.
He said earnings declared by the holding company in its maiden half-year results were a combination of earnings from its two subsidiaries – CBZ Bank and Datvest.
CBZ Holdings declared net income attributable to shareholders of $236 billion during the period under review while the CBZ and Datvest declared net incomes of $216 billion and $27 billion respectively.
“The results of the holding company are a combination of the two subsidiaries as the company has not carried out any business of its own,” said Makuvise.
CBZ Holdings hinted at its half-year results briefing that it was still exploring other investment opportunities as it is currently concluding the acquisition of a yet unnamed company directly related to the financial services sector. Although the company name could not be ascertained, CBZ Holdings is said to have already agreed on the price tag placed on the company.
The deal has resulted in the bank’s board opting not to declare a dividend payment in an effort to make a provision for the planned purchase.
“It’s not our business to keep shareholders’ funds but in this case we have to make provisions for any other investments that the company may undertake and in this case we are in a process to acquire a business,” Makuvise said.
“We deliberately left out anything to do with the financial services sector when we formed the holding company as this will be an investment company, enabling us to invest in sectors and ventures that we believe will add value to our shareholders,” said Makuvise.
The proposed acquisition by the CBZ comes after the company snapped Datvest from Interfin Holdings for $100 billion in cash and shares, bringing the total assets of the company to $4,4 trillion.
Datvest currently has $1,1 trillion funds under management, largely distributed in pension investments with $711 billion, money market with $329 billion and private investors over $70 billion.
“As we know, concern was raised as to why we had acquired the business but we know what we were doing and as you can see that business has become the largest asset manager in the country,” Makuvise said.