FBC exits Turnall, to focus on banking

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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