BoZ terminates Credit Suisse, six others’ stake in Finance Bank
|Finance Bank Zambia Limited
of Zambia (BoZ) has terminated all shareholders’ interests in Finance
Bank Zambia Limited (FBZ) including the 40 percent stake owned by Credit
Suisse (Netherlands) B.V.
According to a Government gazette No. 815 of 2010, posted on
the BoZ website, the bank says the acquisition of 40 percent stake by Credit
Suisse in FBZ, appears to be a lending transaction because of the underlying
agreements that were not disclosed to the bank.
The central bank says
among other things, the agreements guaranteed a return to Credit Suisse on the
The gazette states that other shareholders apart from Credit
Suisse Investment (Nederland) B.V whose contracts were terminated are Finsbury
Investment Limited of Ndola, Clarkwell Limited of Tortilla and British Virgin
Others are Job Albert Samuel of Canada, Estate of the late Pat
Bwalya Puta of Ndola and Patrick Chamunda.
“It is hereby notified for
public information that the BoZ in exercising powers contained in section 81(i)
(c)( i) and (ii) of the Banking and Financial Services Act (BSFA) CAP 387(“
BFASA”) did on the 10th day of December, 2010 take possession of FBZ with effect
from 16:00 hours.
“It is further notified that in exercise of the powers
conferred upon the BoZ by section 84 A (g) of the BFSA, and pursuant to the
Resolution and Order of the BoZ board passed on December 10, 2010, the bank did
on the 22 December 2010 terminate with immediate effect the shareholder interest
in FBZ of all and each of the listed shareholders,” it read in part.
BoZ has started the process of evaluating firms that showed interest to acquire
FBZ after the process of the bank’s sale began last month.
BoZ head of
public relations Kanguya Mayondi said the public will soon be informed on the
outcome after the evaluation process has been completed.