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KINGDOM Financial Holdings founder Mr Nigel Chanakira has sold his 30 percent shareholding in AfrAsia Kingdom Zimbabwe Limited to his co-shareholders in the financial services group, AfrAsia Holdings Limited. The cash and equity swap deal will result in Mr Chanakira, through his family investment vehicle Crustmoon Investments, exiting AfrAsia Kingdom Zimbabwe Limited while the latter will in turn sell its 35,7 percent stake in Botswana’s Kingdom Bank Africa to Mr Chanakira’s Crustmoon Investments.
Mr Chanakira will also step down as director of all AfrAsia Kingdom Holdings Limited and AKZL entities with immediate effect, but will retain the “Kingdom” Trademark from AKZL.
Consequently, AfrAsia will immediately provide US$10 million liquidity support to AKZL and Kingdom Bank and also raise US$20 million capital through rights issue to be to be led by AfrAsia.
AfrAsia Kingdom Zimbabwe Limited will be rebranded to AfrAsia Zimbabwe Holdings, Kingdom Bank to AfrAsia Bank and Kingdom Asset Management to AfrAsia Capital Management.
The deal will also result in restructuring of the board and management of AKZL and KBL, but AKZL chief executive Ms Lynn Mukonoweshuro will retain her post at the helm of the group.
Mr Chanakira said the decision to sell his stake was a difficult one but he had decided to exit AKZL after considering his obligations in relation to the liquidity and capital requirements of the group as a whole.
He said was persuaded by new and emerging opportunities that have been created in the financial services sector to pursue interests outside AZKL such as private equity investment.
“I have particularly been delighted to have been part of this Group which has and continues to be a respected player in the financial sector in Zimbabwe.
“However, in life sometimes one is confronted with major decisions that shape your future, and for me, this is that one moment.
“I will remain invested in the financial services sector through Botswana based Kingdom Bank Africa Limited and will be exploring opportunities in Zimbabwe and the region,” Mr Chanakira said.
AfrAsia chief executive officer Mr James Benoit said: “The restructuring and recapitalisation of AKZL is confirmation of our commitment to Zimbabwe and our belief in its recovery potential and the key role that it can play in regional development going forward.”
“Kingdom Bank under AKZL already represents one of the best banking franchises in the country and we are committed to further developing it into the top bank in Zimbabwe,” he said.
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