20 January 2018
   
Tsvangirai golden handshake confirmed
DisGrace sneaks out three luxury cars
ED cuts Bob Singapore crew from 38 to 22
Call for Diaspora Minister and MPs
ED so over confident it worries him
Priscilla demands coup ‘killings’ details
CBD maize roasting must end now: Min
Tsvangirai faces disgraceful exit: Judge
MORE NEWS
ZTA targets domestic tourism
SOE DEBATE: Privatise most parastatals
MORE BUSINESS
Delight as ZBC 'Iron Lady' suspended
Sulu arrested over $4,000 child support
MORE SHOWBIZ
Mapeza targets CAF CL group stages
Tendai Ndoro special - says Ajax coach
MORE SPORTS
Elections: Not a moment to be lost
A view beyond the Zimbabwe coup
MORE OPINION
 
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
MORE COLUMNISTS
 
 
Turnall loss seen doubling to $7 million
27/09/2014 00:00:00
by The Source
 
 
RELATED STORIES

TURNALL Holdings is likely to report a full-year loss of $7 million, double its half-year deficit , an official said after parent company FBC Holdings’ shareholders voted to divest from the firm.

Shareholders of financial services group, FBC Holdings, on Friday at an extraordinary general meeting, unanimously voted to divest from its loss making manufacturing subsidiary by way of a dividend in specie to the shareholders.

Group chairman Herbert Nkala told shareholders that the decision to distribute Turnall shares to FBC minority shareholders came after a Reserve Bank of Zimbabwe directive ordering the group to cease its investment in non-banking activities.

FBC Bank, the flagship unit of the financial services group, in 2010 acquired a 58,32 percent equity investment in Turnall through realisation of pledged security on a non-performing loan.

After a series of restructuring of the group, the bank eventually held 10,42 percent shareholding of Turnall with the remainder being held by FBCH.

Nkala said the balance of Turnall’s shares would not be made available for distribution but would finance the $754,000 cost the transaction.

“Projections to year end indicate that Turnall will most likely double its half year loss as new management restructures the business.

“We anticipate, however that the business will be back in the black in the following year that is 2015,” said Nkala. Turnall posted a loss of $3,5 million for the six months to June.

He said the divestment of FBCH from Turnall would also create additional income arising from a loan yet to be serviced by the manufacturing concern.

“Turnall currently has an outstanding loan balance of $2,050,719 expiring in July 2016. The loan is considered an insider loan because the loan is due for a related entity. Accordingly, the loan is deducted from the regulatory capital of FBC Bank,” Nkala said.

“However upon the successful execution of the dividend in specie, the loan will no longer be classified as an insider loan and this will have a positive effect on the bank’s capital adequacy and capacity to underwrite more business.”



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker