LISTED financial services powerhouse, CBZ Holdings Limited (CBHL) has conceded to the decision taken by the Competition and Tariffs Commission (CTC) but said it remains undeterred to penetrate the regional markets before 2025 year-end.
In a major climb down this week, CBZHL informed shareholders of the decision to withdraw its proposed mandatory offer to minority shareholders of First Mutual Holdings Limited (FMHL) after the Competition and Tariff Commission (CTC) capped its stake in the insurer at 31.22%.
The move was inspired by regulatory efforts to maintain market competition and prevent over-consolidation in Zimbabwe's financial and insurance sectors.
The mandatory offer, initially announced on October 31, 2024, was triggered by CBZHL's substantial shareholding in FMHL, in line with Zimbabwe Stock Exchange Listings Requirements and the Companies and Other Business Entities Act.
However the CTC's final decision, issued on November 29, 2024, rejected any further acquisition of FMHL shares by CBZHL, effectively blocking the proposed offer.
Speaking to NewZimbabwe.com on the sidelines of the institution's Media Cocktail event held Wednesday evening, the CBZHL group chief executive officer, Lawrence Nyazema downplayed speculation that CTC's decision had crippled plans to penetrate the regional market.
He said the CTC decision was well noted and respected duly but would not at all frustrate regional market penetration plans.
"Yes we would have wanted to go into the region faster and easier through FMHL but we still believe we can go into the region pretty fast. Our target is to be operating in two regional countries by June 30 2025.
"Right now my feeling is that we are likely to get into the international markets much faster and quicker using some of our subsidiaries outside the bank because going the route of the bank establishment in a foreign land tends to be over-regulated in a lot of countries and the capital requirements for setting up a bank tend to be higher," he said.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Nyazema said CBZHL must not be viewed as just a bank but a group with subsidiaries which can be seized to perform regional tasks.
"So we have businesses that are capital lite which have done so well locally. You look at our Asset Management which trades as Datvest . What will stop us from taking this company to another region and using its success story achieved in Zimbabwe?"
He expressed optimism that by June 30 2025, CBZHL, through its subsidiaries, will be present in two countries in the region.
