Tendai Kamhungira 
IT HAS emerged that ZB Financial Holdings (ZBFH) is among the leading bidders for Standard Chartered Bank Zimbabwe (Stanchart), with discussions between the two parties believed to be now at the level of the evaluation of the former’s offer.
This comes as sources have told The Financial Gazette that ZBFH also approached Standard Chartered Bank in mid-2022 with a view to acquiring Stanchart’s 24,78 percent interest in Mashonaland Holdings (Mash) — as part of its consolidation strategy in the property investment and development company.
ZBFH is the controlling shareholder in Mash. It has since made a mandatory buyout offer to minority shareholders in the company, which runs until the end of this week, with the major financial services group keen to improve the performance of the property firm.
The sources who spoke to The Financial Gazette — Zimbabwe’s number one business publication — said ZBFH had first met with Stanchart’s representatives in September 2022 to discuss the acquisition of the latter’s operations and investments in the country.
Part of the discussions to date have included a preferred approach to engage with local regulators to secure approval for the transfer of Stanchart’s banking licences; how the two parties would replace the technology platform and business services that the Standard Chartered Group currently provides to its Zim subsidiary, which won’t be provided post the completion of a deal; and the strategy for replacing payment services that the Standard Chartered Group currently provides.
In addition, discussions between the two parties have centred on the approach to be adopted to migrate the customer relationships — including the assets, liabilities and customer data — of Stanchart; the intended approach for the integration of Stanchart staff into ZBFH’s business; and the services that ZB will require Standard Chartered to provide for a period post the completion of the acquisition.
“The benefits of the proposed transaction were noted to include the fact that the transaction will facilitate the distribution of Stanchart’s product offering to a wider clientele through ZB Bank’s 49 branches nationwide and deepen ZBFH’s product portfolio.
“It is also appreciated that Standard Chartered’s digital adoption will fit in very well with ZBFH’s ongoing digital drive, thus enhancing the combined entities’ digital efficiencies.
“In addition, ZBFH and Stanchart have similar client bases and so cross-selling of products will improve the earnings potential of both entities, while the proposed transaction will also give ZB access to high net worth clients that are currently being served by Stanchart,” one of the sources said.
It was further noted that Stanchart had more than 43 000 customers, most of them corporates, which would be a good addition to ZB’s more than one million largely retail clients.
Stanchart’s plus or minus 250 full-time employees, who were referred to as “highly experienced”, would also fit very well in ZBFH — which has been going through a much-publicised organisational transformation.
“It was noted that the industry is currently shifting towards digitalisation and ZBFH has been on a drive to improve the use of digital technologies, an area which Standard Chartered has had considerable success.
“Regarding the product range, the combined product offering involving ZBFH and Stanchart services is also likely to create the market’s widest product portfolio.
“Post the acquisition, ZBFH is thus very likely to keep Stanchart’s operations undisturbed, working instead to enhance rather than disrupt the current offering.
“As such, the 254-plus strong work force would not be affected in this arrangement, but will likely benefit from the aggressive expansion that ZBFH has embarked on,” another source said.
Regarding Mash, ZBFH acquired a controlling block in the firm following the cancellation of 171 489 938 ordinary shares that were acquired under the share buyback scheme and constituting 9,2 percent of Mash, and subsequent share purchases that ZBFH has been undertaking. The share cancellation exercise approved on June 23, 2022 and the subsequent share purchases by the group increased ZBFH’s shareholding to 40,5 percent held directly and indirectly in Mash, which necessitated the mandatory offer to minorities.
