23 January 2018
   
ZRP ‘Idiot’ Charamba loses cop insult case
Gukurahundi: Blame govt, not me – says ED
SA: Jazz legend Hugh Masekela dies
Cholera: Angry minister blasts city councils
Mzembi challenges arrest; quits politics
Mudzuri: Amnesty for MDC-T cop murder 3
Mnangagwa: Grace mentally unstable
ZESA gave Chivayo $7m, not $5m: Parly
MORE NEWS
Govt reduces excise duty on fuel
Filthy 5-Star hotels: Economy blamed
MORE BUSINESS
‘Am I African’ explores Zim's race conflict
Gafa’s Epworth concert draws thousands
MORE SHOWBIZ
Billiat might still leave: Sundowns coach
Katsande: Chiefs show championship mentality
MORE SPORTS
Mnangagwa’s ‘New’ Zim merits support
Zhuwao: kleptocracy and EDiots in Davos
MORE OPINION
 
Mnangagwa off to Davos empty handed
Economy: the need for a paradigm shift
MORE COLUMNISTS
 
 
FBC exits Turnall, to focus on banking
28/09/2014 00:00:00
by Business Reporter
 
 
RELATED STORIES

THE marriage between FBC Holdings and Turnall ended on Friday after shareholders unanimously approved the transaction which was settled through a dividend in specie.

FBC Holdings owned a 58,3 percent interest in Turnall, 47,9 percent controlled through FBC Bank and the other and 10,4 percent held by the holdings company.

FBCH chairman Herbert Nkala told an EGM last week that the transaction would not have a significant impact on the group in terms of net asset value.

However, profitability for year-end will reduce by US$6,8 million although the group will remain profitable.

“It is also important to mention that this once off transaction will result in the spinning-off of non-core activity and the consequent presentation of a clean financial services focused group,” he said.

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.

Nkala said the investment in Turnall was by default and the group has been unsuccessful in getting a cash buyer for Turnall shares.

“In this case, value would have been lost had Turnall shares been disposed below market value due to the current illiquid economy,” he said.

According to Nkala, total costs associated with the Dividend in Specie transaction are estimated at US$754,598.


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