13 June 2014

Zimbabwe: Afrasia Moves Deadline for Chanakira Deal

AFRASIA Bank on Friday announced that shareholders had approved the extension of a deadline to settle US$12,5 million for shares held through banker Nigel Chanakira's Crustmoon which would have concluded the long term running divorce of the two parties.

The deadline for the separation of AfrAsia and Chanakira through the repurchasing of 289,133,648 of AfrAsia's issued shares held by Crustmoon for $12,5 million was March 31.

In a statement to shareholders Friday, Afrasia advised all stakeholders that the two are now in mutual agreement to extend the deadline for consummation of the buy-back transaction of Crustmoon shares from 31 March 2014 to 30 September 2014.

"The extension of the deadline was necessitated by delays in fulfilment of certain conditions precedent to the implementation of this complex transaction.

"All actions are proceeding well and directors are confident that the final closing of the transaction to the satisfaction of all parties to the Memorandum of Agreement will actually take place well before the new deadline," said Afrasia.

The transaction comprised a cash consideration of US$2,5 million with the balance settled through an indirect cession of certain claims against loan debtors.

The deal also involved the transfer of the Kingdom Trademark to the banker.

The bank said the failure to beat the deadline was a result of delays in fulfilment of "certain conditions precedent" without giving more details.

Afrasia directors have called for an extraordinary general meeting on June 27 to ask shareholders to amend a resolution reached last year which related to the restructuring of AfrAsia Kingdom Zimbabwe through repurchasing of 289,133,648 of its issued shares indirectly held by Crustmoon through AKHL for $12,5 million.

The total consideration payable by the company comprised of $2,5 million cash and the balance through an indirect cession of certain claims against loan debtors and related security assets held by Kingdom bank and transfer of the Kingdom Trademark.

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