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FBC buys back ShoreCap stake


FINANCIAL services group, FBC Holdings Limited says it has bought back almost 48 million shares from USheadquartered fund, ShoreCap II Limited and placed them under the custody of its treasury.

The shares, purchased by the Chicago-based financier eight years ago, represent 7,14% of the diversified banking group’s issued share capital, but have been taken back after ShoreCap II said it would we winding up at the end of this month.

ShoreCap II’s investment into FBC in 2013 was part of the Zimbabwe Stock Exchange-listed firm’s strategy to acquire technical support from networked investors that would unlock fresh opportunities.

FBC said ShoreCap was behind the launch of Microplan Financial Services (Private) Limited, while the Zimbabwean operation had also benefited through skills transfer and the establishment of FBC Bank’s small and medium enterprises (SME) banking and women’s desk.

In a statement to shareholders, FBC said ShoreCap II had not gone bust, but had a closed-end life.

The shares will be subsequently resold to potential strategic investors, FBC company secretary, Tichaona Mabeza said in a shareholder update.

“The share repurchase constitutes 7,14% of the issued share capital of FBC Holdings Limited, and brings the total treasury shares acquired through the FBCH share buyback scheme to 7,52% of the issued share capital of FBC Holdings Limited,” Mabeza said.

“With due notification and approvals having been granted by the respective regulators, the book-over was undertaken on the Zimbabwe Stock Exchange on June 10 2021.

“During the subsistence of the strategic and technical support relationship between FBCH and the ShoreCap II fund, proceeds from the ShoreCap II investment were invested directly into the operations of FBCH, resulting in the greenfield establishment of our microfinance unit, Microplan Financial Services (Private) Limited.

“FBCH has over the years also benefited from ShoreCap II Limited through skills transfer opportunities, peer-to-peer exchange programmes, assistance with the establishment of FBC Bank’s SME Banking and Women’s Desk and international capital market referrals to strategic decision-makers of leading international debt financers,” Mabeza said.

“The ShoreCap II fund has a closed-end life, and having fulfilled its investment mandate of supporting emerging market financial institutions like FBCH, it is due to wind up on June 26 2021.

“With the life of the Fund coming to an end, FBCH has redeemed the investment and repurchased all outstanding shares held by ShoreCap II Limited,” Mabeza said.

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