Leading financial institutions from Dubai and Singapore are eyeing the National Social Security Authority (Nssa)’s 37,79 percent stake in ZB Bank worth more than US$ 12 million dollars, it has been established.
The authority is disposing of its stake as it seeks the much needed foreign currency to embark on projects that will enhance the welfare of the people.
This desire to unlock various projects has seen NSSA also considering offshore bids.
NSSA, which oversees the national pension scheme, has 66 528 608 shares in ZB and is disposing of its entire stake in the financial institution.
Sources close to the transactions said foreign financial institutions were targeting ZB and NSSA was looking at their bids.
Dubai’s bank asset size is over USD 400 billion and the financial institution from the oil rich nation eyeing the ZB stake has an asset size worth over USD 50 billion Singapore’s bank asset size is over USD2 trillion.
“The ZB stake has generated a lot of interest from large financial institutions in Dubai and Singapore. NSSA is looking for the much needed foreign currency to unlock projects meant to enhance the well-being of the people. As such there seems to be appetite from NSSA to consider the offshore bids for the stake. ”
NSSA acting general manager Mr Arthur Manase confirmed the authority was disposing of its entire stake in ZB “as part of our banking sector restructuring exercise.”
He said they had received more than 3 bids for the stake.
Said Mr Manase: “We are in the process of finalising the due diligence and going through the necessary governance approval processes.
Sources said the transactions were being brokered by agents with beneficial owners being publicised relevant agreements.
But Mr Manase declined to comment on the issue of agents.
“This is in the interest of evaluating the transaction based on merit. As things stand, NSSA is not aware of the parties that are represented by the respective agents,”he said.
As at June 26, 2020, the ZB share was trading at about ZW$11,35 on the bourse.
One economist said these foreign financial institutions were interested in the local banking sector because they believed the Zimbabwean economy would open soon.
“They believe that Zimbabwe’s economy will be worth over USD 100 billion in the next 10 years.The economy is expected to rebound buoyed by the increase in mining and agricultural production.”
