APA-Harare (Zimbabwe) Standard Chartered Plc has agreed to sell its Zimbabwe unit to local financial services group FBC Holdings Limited (FBCH), the London-based group announced on Thursday.
Standard Chartered chief executive for the Africa and Middle East (AME) region Sunil Kaushal said the acquisition of the bank’s business in Zimbabwe was subject to approval of the Reserve Bank of Zimbabwe and other regulatory authorities.
“The agreement with FBCH for the sale of Standard Chartered’s business in Zimbabwe is in line with the bank’s global strategy aimed at achieving operational efficiencies, reducing complexity, and driving scale,” Kaushal said in a statement.
He added: “This strategic decision allows us to redirect resources within the AME region to areas with significant growth potential, ultimately enabling us to better support our clients.”
Under the transaction, FBCH would acquire 100 percent of the shareholding in Standard Chartered Bank Zimbabwe, as well as the economic interest in Africa Enterprise Network Trust whose main asset is a 20.7 percent shareholding in Zimbabwe Stock Exchange-listed property company Mashonaland Holdings.
FBCH would continue to employ all of Standard Chartered Bank Zimbabwe’s employees, while the two banks “will work closely in the coming months to provide a seamless transition for its clients and staff.”
The transaction comes over a year after Standard Chartered Plc announced plans in April 2022 to exit Angola, Cameroon, Cote d’Ivoire, Gambia, Lebanon, Jordan, Sierra Leone, Tanzania and Zimbabwe.
JN/APA