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Oliver Kazunga Senior Business Reporter
GOVERNMENT is seeking a strategic investor for partial privatisation of the People’s Own Savings Bank (POSB) with the bidding process scheduled to close in mid-October this year.
The Government, which wholly owns the bank, plans to partially privatise POSB as part of its extensive overhaul of the underperforming public enterprise sector.
The Reserve Bank of Zimbabwe (RBZ) plans to offer 29 percent available shareholding through the private placement of the bank’s equity share capital.
“The People’s Own Savings Bank wishes to invite interested investors to submit expressions of interest to acquire up to 29 percent shareholding in POSB.
“Expressions of interest in the partial privatisation of the People’s Own Savings Bank… Closing date and time:13th October, 2023.
“Bids submitted after the deadline shall not be considered,” reads part of the Government Gazette issued last week.
Accordingly, it said the Government will hold 51 percent equity stake after the partial privatisation as provided in the People’s Own Savings Bank Act.
The private placement will be followed by an initial public offering (IPO) of up to 20 percent shareholding of the bank to diversify the shareholder base and improve liquidity of the shares.
“KPMG Advisory (Private) Limited are the financial transaction advisors for the engagement of a strategic investor in the partial privatisation of POSB.”
The partial privatisation of POSB is in line with the Government’s parastatal reform agenda that is guided by the Short to Medium Term Reform Framework (SEPs-SMTRF).
The programme intends to bring about engagement of strategic partners not only for POSB, but several State-owned entities (SOEs) like the Infrastructure Development Bank of Zimbabwe and firms under the Industrial Development Corporation (IDC).
In the 2023 national budget, the Government has stated that it will be prioritising the parastatal reforms agenda this year guided by the National Development Strategy 1 (NDS 1) as authorities strive to moderate the enterprises load on the fiscus and promote efficiency.
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