NSSA takes over RMB

Mr Reggie Saruchera on Friday announced that NSSA had completed the takeover of RMB, in a move likely to see the bank moving out of curatorship when the period lapses at the end of this month.
As the majority shareholder in the banking arm, NSSA is most likely going to make significant changes to the board in a bid to protect its investment.
The transaction would see a cash injection of US$9,8 million into the bank, helping it to meet the Reserve Bank of Zimbabwe’s minimal capital threshold of US$10 million for merchant banks.
The agreement will result in the conversion into equity of a debt of US$8,5 million and the assumption of a debt of US$5,7 million owed to Econet
by Renaissance Financial Holdings Limited and RMB.
Mr Saruchera said shares held by RFHL, Renaissance Investment Banking Corporation and Renaissance Securities in Afre would be transferred to RMB as settlement of US$13,3 million owed to RMB by RFHL.
Econet Wireless, according to the transaction, is also expected to sell its shareholding in Afre to NSSA. Econet controlled 19 percent of Afre.
“We are thankful that the requisite approvals for the agreement have been received from the relevant authorities,” said Mr Saruchera.
Clearance has been received from the ministries of Finance; Labour and Social Services; Youth Development, Indigenisation and Empowerment; RBZ and the Registrar of Banking Institutions.
“The parties are working towards obtaining a few outstanding approvals which we are confident shall be granted,” said Mr Saruchera.
The conclusion of the deal comes at a time when the two factions of the RFHL board issued conflicting statements regarding an EGM slated for January 17 2012 but subsequently postponed to January 25.
Shareholders representing 77 percent stake in the company went ahead with the unsanctioned meeting to fire board chairman Professor Christopher Chetsanga, and two other directors, Mr Collin Kahuni and Mrs Monica Maitirwa Mukonoweshuro.
But the Reserve Bank of Zimbabwe dismissed the firing of the three, arguing that the meeting was illegal as it had not been sanctioned by the central bank and the bank’s curator, Mr Saruchera.
RMB was placed under curatorship for six months in June last year to facilitate investigations and to institute corrective measures following dealings that allegedly exposed the bank to a negative capital of US$16 million.
The curatorship period was further extended to February 2012 and Mr Saruchera’s tenure was also extended for the same period.