Interfin closes in on bank

Corporation, through a share swap deal.

The directors of the financial services firm are seeking shareholder permission at its Annual General Meeting scheduled at the end of this month to acquire 59,68 percent shareholding in IBC.
Interfin FS currently holds 40 percent in the banking arm. Company secretary Ms Tsitsi Muchengwa said directors were seeking to buy 7 533 333 ordinary shares of the bank, from the members, in exchange for 30 547 665 ordinary shares in Interfin FS, on the basis of 4 055 Interfin FS shares for every 1 000 IBC shares.

This means that shareholders in IBC will relinquish their stake in the banking arm and assume more shares in the holding company, as IBC shares would be listed on the Zimbabwe Stock Exchange.
Interfin FS is owned 51,5 percent by Interfin Holdings, 17,3 percent by National Social Security Authority (NSSA) and Msasa Nominees 7,50 percent.

The top five shareholders control more than 80 percent of the 20 million shares issued on the ZSE.
Interfin FS gained entry into the commercial banking sector after taking a controlling stake in CFX after the shareholders under-subscribed the group’s US$10 million rights issue.

After the takeover of CFX, Interfin FS later took over CFX liabilities and transferred the assets to Interfin Banking Corporation, resulting in the group reverse listing on the ZSE.
At the AGM directors will also seek approval to place unissued shares under the control of directors.

Directors are also seeking the green light to buy back for cancellation a maximum of 10 percent of the ordinary shares of the company.
The maximum price of the shares would be set at 10 percent premium to the 30-day volume weighed average trading price of the Interfin FS share on ZSE for 30 days preceding such purchase.

On its debut on the ZSE, Interfin FS traded 53 396 ordinary shares at a listing price of US45c. Yesterday buyers wanted US15c for Interfin FS shares.
Interfin FS shares were consolidated to 20 million at a rate of 1 000:1 after Interfin FS acquired a controlling stake in CFX Financial Services.

Going forward, following the transformation from a merchant bank to a commercial bank, the group is looking at opening about 12 branches this year, taking its national network of 27.
The bank is also upgrading its core banking system to the latest version and they are planning to explore the unbanked market.

IFS traded for three months last year and made a large provision of 5 percent of its book, writing down amounted to US$4,28 million compared with an industry average of less than one percent.
The loan book in the period grew 260 percent to US$105 million, but deposits and offshore lines of credit rose four-fold to US$144,5 million.

Capital adequacy stood at US$18,2 million against a minimum of US$12,5 million. Shareholder funds stand at US$21,2 million.
Interfin FS has been active on the market, underwriting a number of recapitalisation initiatives in the manufacturing sector.