Mystery surrounds ZB-Vingirai deal

8

MYSTERY surrounds the status of a deal to split of ZB Financial Holdings (ZBFH) shareholding between the group and banker Nicholas Vingirai’s Transnational Holdings Limited (THL), after the former issued a cautionary statement that talks had collapsed.
But Vingirai insisted the deal was still on.
Last week, ZBFH issued a cautionary statement to its shareholders suggesting that a deal that would have seen the dismantling of the financial institution had broken down.
“Further to the cautionary statements issued by the board … shareholders and members are advised that negotiations regarding the proposed material transaction involving ZBFH have significantly stalled and the proposed transaction has not been concluded to date.
“Should negotiations resume, the company will similarly advise shareholders. Accordingly, shareholders and the investing public are advised to take note of the withdrawal of the cautionary statement,” ZBFH said in the statement issued last week.
However, Vingirai told The Financial Gazette that as far as he and THL were concerned, negotiations were still in progress.
“Transnational is not aware that the negotiations have stalled. As far as we are aware, the matter is being finalised, hopefully very soon,” he said.
“For comment on the ZBFH statement, I would suggest you contact either ZB or the Reserve Bank of Zimbabwe,” Vingirai said.
ZBFH said they could not comment beyond the cautionary statement.
Although government managed to forge an agreement with THL in 2016 through which the latter received a 19,9 percent stake in ZBFH, matters came to a head this year after the National Social Security Authority (NSSA), a major shareholder in the group (37,8 percent), resisted the proposed allocation of a further six percent to 10 percent shareholding to THL.
It also forced the removal of three THL nominees to the group and the appointment of all independent directors.
Restoration of THL rights in Intermarket and by extension ZBFH through an agreement made on May 31, 2016 was supposed to herald the appointment of nominees such as Mike Mahachi, Zororo Muranda and Mike Manyika to the group, including the return of Vingirai as a non-executive director.
But NSSA blocked the appointments and also voted for a resolution to instruct THL to repay a $658 699 dividend that it had received from ZB on January 23, 2017.
newsdesk@fingaz.co.zw