15 November 2012

Zimbabwe: FBC Wins Homelink Bid

FBC Holdings has won the bid to buy the property division of Homelink, a subsidiary of the Reserve Bank of Zimbabwe. Impeccable sources confirmed the development but could not, however, disclose how much the financial group will pay for the business. The central bank is in the process of selling its shareholdings in non-core businesses.

"FBC has won the bid but it is not taking over the whole business," said one source.

"FBC is interested in the property division which I am sure will be incorporated into the building society. Probably the deal may be signed this week."

FBCH spokesperson Ms Priscilla Sadomba could neither confirm nor deny the latest development. But she confirmed that the group submitted a bid for Homelink.

"FBC Holdings has expressed an interest in the sale of Homelink," she said yesterday.

"Please be advised that until such time we have received official communication from the Reserve Bank on the issue, we are not at liberty to comment.

"As soon as we are officially advised, we will be happy to answer your questions."

Early this year, the central bank announced it was selling its non core assets.

The RBZ has already sold its 59 percent stake in Zimbabwe Stock Exchange-listed Tractive Power Holdings to Zimplow Limited in a deal worth about US$10 million.

Bids were also invited for the sale of 65 percent in ZSE-listed Astra Holdings and 64 percent in Cairns Holdings. Cairns and Astra have a combined value of about US$8,5 million at the current market capitalisation.

The central bank is also selling a 70 percent stake in Tuli Coal Mine in Beitbridge, about 50 percent shareholding in Transload (Private) Limited, 65 percent equity in Scientific Research and Industrial Development and its 100 percent shareholding in Carslone Enterprises.

Homelink was incorporated in February 2005 with the primary objective of mobilising foreign currency remittances from the Diaspora when Zimbabwe was facing serious foreign currency shortages.

Over the years, the company adapted to the changing business environment and transformed itself into a financial services company. It has since widened its market to include local Zimbabweans.

The company is offering a wide range of financial services products, which include home loans, micro-financing, property construction, property management and money transfer services.

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