New majority shareholder for Steelnet

arm disposed of its shares in two SMM Holdings subsidiaries.
The workers investment vehicle also gained control of 18,95 percent shareholding in General Beltings, following the re-organisation of the group.
The diversified financial services group announced this week that Turnall Holdings is now a direct subsidiary of FBC Holdings, following a dividend in specie by the bank to the holding company.
According to the latest share register of March 23, 2011, FBC Pension Fund controls 155 152 507 shares (28,84 percent) of Steelnet, followed by Equivest Nominees with 115 419 9900 (21,45 percent) and SMM Holdings with
60 000 000 shares (11,15 percent).
SMM still controls General Beltings with 231 893 327 shares, representing 43,74 percent of the company, followed by FBC Pension Fund with 18,95 percent, and GB employee share participation trust with 47 909 266 shares (9,04 percent) of the issued shares.
Both companies listed on the Zimbabwe Stock Exchange have 537 982 124 and 50 188 624 shares in issue.
FBC Bank gained control over the engineering firm after SMM failed to settle a US$8 million loan from Africa Export and Import Bank.
The transaction resulted in FBC Bank gaining control of 60 percent in Turnall, 19 percent in General Beltings and 30 percent in Steelnet.
In a statement accompanying its full year results to December 31, 2010, FBC said the group was re-organised, deciding to hold on to Turnall, which contributed US$4,8 million in profits.
During the period under review, FBCH acquired a 49,2 stake in Eagle Insurance Company of Zimbabwe from Zurich South Africa in a US$650 000 cash transaction.
The transaction brought FBCH’s shareholding in the insurance company to 72,5 percent since FBC Reinsurance had a 23,3 percent shareholding. The new business is valued at US$3 million and possesses potential business for the financial giant.
Group chairman Mr Herbert Nkala said: “These acquisitions have significantly improved the group’s revenue generating capacity.”
During 2010, FBC entered the ranks of the country’s top six banks after growing is deposit base and expanding its loan book.
The bank is also a market leader in sourcing lines of credit.
Mr Nkala said FBCH subsidiaries were also in full compliance with regulatory requirements, with the bank capitalised to the tune of US$23 million.
FBC Building Society stands at US$11 million compared with the required US$10 million and the reinsurance business is at US$5 million compared with US$400 000.
Despite liquidity constraints on the equities, FBC Securities is capitalised to the tune of US$359 000 from a regulatory minimum of US$100 000.
During the financial period the group recorded a total income of US$38 million and profit before tax of US$4,1 million after deducting US$3,5 million in retrenchment costs.