CBZ Holdings’ planned takeover of Beverley Building Society (BBS) is likely to be finalised in January following delays by the regulatory authoriti
es in granting requisite approvals for the transaction, businessdigest established this week.
According to latest information, CBZ has not yet received approval for the acquisition, valued at £3,5 million, from the Reserve Bank of Zimbabwe (RBZ) and the Competition and Tariff Commission which are understood to be reviewing the financial institution’s application.
CBZ is buying the stake from the British-based Andrew Weir Family which wholly owns Beverley.
Businessdigest revealed two months ago that CBZ had taken over the country’s second largest building society for £3,5 million in a deal that was signed between the two parties in September.
At that time sources said the takeover would be consummated before the end of October, but unexpected hitches had delayed consummation of the deal.
CBZ was expected to make the payment at the beginning of November.
New information however indicates that the deal will be completed during the first week of January when the approvals are expected to have been obtained from the authorities in Zimbabwe.
“Both parties are waiting for approval. We expect that the deal will be finalised in the first week of January,” said a source close to the issue. The takeover will make CBZ the biggest bank in Zimbabwe in terms of assets.
CBZ chief executive, Nyasha Makuvise, could not be drawn into commenting on the matter, only saying in a terse response:”(You’d) rather wait for the right time”.
Beverley managing director, Mike Moyo, said he could not comment on shareholder issues.
“Well, that is a shareholder issue and I have no comment to make. However, I can confirm that there has been a lot of interest in the society,” Moyo told businessdigest in an interview.
He however, said he was “aware that no transaction has yet been finalised”.
CBZ’s acquisition of Beverley will add assets valued at over $19, 7 billion.
It will get an estimated 700 000 additional depositors from its acquisition of Beverely which also has $3,9 billion in savings accounts. Beverely has a mortgage book valued at $1,6 billion.