Published by the government of Zimbabwe
6 October 2008
Harare — AFRICAN Banking Corporation Holdings shareholders last week gave the bank the green light to proceed with the US$150 million rights offer.
The regional banking giant has been mulling to raise funds for the rolling out of its retail banking operations.
In a notice to shareholders, group secretary Markus de Klerk said shareholders approved resolutions for a proposed capital raise by the company of up to US$150 million, by way of two private placements to the International Finance Corporation and to CVCI Africa Investments Limited and the balance by way of a rights offer to shareholders.
The successful conclusion of the rights issue is anticipated to transform the group significantly and will move it closer to its vision of being pre-imminent Pan African financial services group.
In June, Citi Venture Capital International (CVCI), a subsidiary of New York-based Citigroup approved an investment of US$25 million by way of a two-year convertible loan into ABCH.
Citigroup is one of the world's pre-eminent financial services companies with some 200 million-customer accounts in more than 100 countries.
ABC also recently entered into a convertible loan agreement with the International Finance Corporation (IFC), an international organisation, which saw the latter releasing US$13,5 million loan to the bank.
Shareholders at the meeting also approved the waiver of their pre-emptive rights in respect of the issue of shares for cash to the IFC and CVCI.
"The issue of a convertible note to CVCI under the terms of Subscription Agreement and associated agreements that are integral components of the transaction was also approved," said de Klerk.
Shareholders also approved the entry by the company into a put option agreement with IFC and a waiver by shareholders of their pre-emptive rights in respect of the issue of ordinary shares in the company to CVIC in the event of conversion of that convertible note.
Directors were also allowed to issue new shares from time to time as may be necessary to enable the company to honour its obligations pursuant to the employee shares scheme and for shareholders to waiver their pre-emptive rights to such issues.
Shareholders present at the meeting ratified the dividend declared on 26 February and paid on 04 April 2008.
Be the first to Write a Comment!
Copyright © 2008 The Herald. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
