Fradreck Gorwe Business ReporterZimbabwe Stock Exchange listed financial service provider, First Capital Bank Zimbabwe, is set to benefit from the creation of new shareholder value following the fresh acquisition of Bank of India (Botswana) Limited (BOIB) by First Capital Bank Botswana.
The development was announced this week by the Mauritius based parent company, FMBcapital Holdings Group (FMBCH).
In acquiring the BOIB, First Capital Bank Botswana reportedly capitalised on the bank’s decision to divest from certain markets outside India.
“FMBcapital Holdings Group (FMBCH), the Mauritius based holding company for First Capital Bank Zimbabwe, has this week announced the successful acquisition of Bank of India (Botswana) Limited (BOIB) by First Capital Bank Botswana. The opportunity to acquire BOIB came as a result of the decision by Bank of India to divest from certain markets outside of India, including Botswana,” said First Capital Bank Zimbabwe said in a statement.
The acquisition of First Capital Bank Botswana has reportedly assumed ownership and control of BOIB’s assets, clients and staff within its business. The migration of customer accounts has also been concluded with former BOIB customers now transacting on the First Capital Bank Botswana platform.
Managing director of the parent FMBcapital Holdings, Dheeraj Diskshit, noted the acquisition did justice to the holding group’s expansion focus and strategy.
“The acquisition of BOIB feeds into our strategy and focus to grow our regional footprint and leverage on increased cross border trade and commerce in the markets that we operate in.
“It is an incredible milestone for our business and a reflection of the belief our shareholders and customers have in the growth of the business we have created,” said Mr Diskshit.
Meanwhile, First Capital Bank Zimbabwe’s acting managing director and Group chief finance officer for FMB Capital Holdings, Ciaran McSharry, commended the development as having created new shareholder value for the group and customers.
First Capital Bank Zimbabwe is a part of FMBcapital Holdings PLC, which has banking operations in Botswana, Malawi, Mozambique, Zambia and Zimbabwe. The bank offers a comprehensive range of corporate, commercial and retail banking services.
The bank was listed on ZSE in 2018 following the name change from Barclays Bank Zimbabwe to First Capital Bank in line with the acquisition of a 43 percent stake in Barclays by a Malawi based First Merchant Bank. Prior to this, FMBcapital group had acquired 62 percent shareholding in Barclays Zimbabwe.
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