By Alois Vinga
GETBUCKS Financial Services is currently in negotiations for a US$5 million recapitalisation to enable the bank to meet required minimum threshold set by the Reserve Bank of Zimbabwe (RBZ).
According to the central bank thresholds Tier 1 banks, large indigenous commercial banks and all foreign banks are now required to have US$30 million minimum capital.
Tier 2 commercial banks, merchant banks, building societies, development banks, finance and discount houses are now required to have a US$20 million minimum capital, while Tier 3 deposit-taking microfinance banks, are required to have US$5 million minimum capital.
GetBucks is yet to meet the set thresholds prompting the move to raise a cash call.
In a notice to shareholders ,GetBucks company secretary, Michael Munemo advised shareholders that negotiations for a recapitalisation are still in progress, the full impact of which is still being determined and if successfully concluded may have a material effect on the price of the company’s securities .
“Shareholders are advised that the board of directors has since approved the recapitalization which will result in the increase in capital of the Zimbabwean Dollar equivalent value of up to US$5 million at the prevailing Reserve Bank of Zimbabwe auction rate,” said Munemo.
As a result, advisors, an underwriter and other related parties have been identified and are in the process of being appointed.
“It is anticipated that a circular to members will be issued and a notice of an extra-ordinary General meeting of members will be published before the end of the first quarter of 2022.The transaction will be subject to all legal and regulatory approvals prior to the initiation of the process,” the bank said.
Accordingly, shareholders have been advised to continue exercising caution when dealing in the company’s securities until a full announcement is made.