Malawian bank targets Barclays Bank Zimbabwe

Barclays (Picture: AFP)
Barclays (Picture: AFP)

Harare - Malawian bank First Merchant Bank Malawi said it has approached Barclays Bank and is now in engaged in negotiations for the possible acquisition of a controlling shareholding in its unit Barclays Bank of Zimbabwe Limited.

In a statement released on Tuesday, First Merchant Bank Malawi said it is engaged in exclusive discussions with Barclays Bank in relation to the potential acquisition of its interests in Barclays Bank of Zimbabwe Limited.

“Discussions with Barclays Bank plc are ongoing and may or may not result in the announcement of a transaction involving the acquisition by First Merchant Bank Malawi of the interest of Barclays Bank plc in Barclays Bank Zimbabwe,” said First Merchant Bank Malawi.

“Such transaction would also be subject to obtaining approval of the banking regulators in Malawi and Zimbabwe.”

“The directors therefore advise shareholders of FMB (First Merchant Bank) and the public to exercise caution and to consult their professional advisers when dealing in the shares of FMB. Further announcements will be made in due course.”

Barclays recently said it has reached an agreement with its African subsidiary about details of their divorce, a key step before the British bank can sell more shares of the JSE-listed offshoot, Barclays Africa Group [JSE:BGA] or Absa.

Barclays Zimbabwe is however not part of Barclays Africa, but falls under Barclays' non-core businesses.

The suitor First Merchant Bank Malawi is a public limited liability company incorporated in Malawi under the Malawi Companies Act 1984.

It is also listed on the Malawi Stock Exchange and is registered as a commercial bank under the Banking Act 2010. 

It has two wholly owned subsidiaries incorporated in Malawi: the Leasing and Finance Company of Malawi Limited, a licensed financial institution engaged in deposit taking and asset finance, and FMB Capital Markets Limited, a licensed portfolio manager.

First Merchant Bank Malawi also holds a 70% shareholding in Capital Bank Limited, a licensed commercial bank incorporated in Mozambique, a 38.60% shareholding in Capital Bank Limited, a licensed commercial bank incorporated in Botswana and 49% in First Capital Bank Limited, a licensed commercial bank incorporated in Zambia.

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
14.98
(+0.29)
ZAR/GBP
20.86
(+0.69)
ZAR/EUR
18.05
(+0.69)
ZAR/AUD
11.64
(+0.09)
ZAR/JPY
0.14
(+0.60)
Gold
1723.82
(-0.84)
Silver
26.49
(-0.99)
Platinum
1184.00
(-0.96)
Brent Crude
64.90
(0.00)
Palladium
2349.99
(+0.85)
All Share
67536.96
(+2.12)
Top 40
62107.04
(+2.23)
Financial 15
12456.31
(+2.10)
Industrial 25
88082.08
(+2.25)
Resource 10
68969.71
(+2.24)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1039 votes
No, I did not.
52% - 2594 votes
My landlord refused
28% - 1399 votes
Vote