AMERICAN financial concern Citigroup last week said it had acquired 20 per cent shareholding in ABC Holdings (ABCH).
Citigroup has approved a US$25 million investment into ABCH through its subsidiary, Citi Venture Capital International (CVCI), according to a statement by ABCH chairman Oliver Chidhawu.
ABCH is listed at the Botswana Stock Exchange and Zimbabwe Stock Exchanges.
It has operations in Mozambique, Tanzania, and Zambia.
Last year, the International Finance Corporation (IFC) injected US$20 million into the financial institution — a transaction analysts said would strengthen the weak financial architecture of Zimbabwe and help boost the private sector’s access to capital.
Citigroup is today one of the world’s pre-eminent financial services companies with some 200 million-customer accounts in more than 100 countries.
“The directors are pleased to advise shareholders that Citi Venture Capital International (CVCI), a subsidiary of Citigroup, has approved an investment of US$25 million by way of a two-year convertible,” Chidhawu said the statement.
“The terms and pricing parameters of the CVCI offer are broadly in line with those of the IFC convertible loan. CVCI manages a fund, which is over US$1 billion in size. On conversion, the investment will give CVCI a stake close to 20 percent in the group,” the statement added.
“During January 2008, the IFC, a member of World Bank group, subscribed for 13,850,845 ABCH shares at a total cost of BWP 37,4 million, taking its shareholding to ABCH to 10,7 percent of the issued share capital,” Chidhawu said.
Chidhawu said ABCH directors were investigating the possibility of a rights issue and private placement in order not to significantly dilute the existing shareholders.
If approved, the rights issue would strengthen the capital position of the group, ABCH said.
During the period under review, ABCH said the group’s Zimbabwean operations continued to perform well “despite the continued devaluation of the Zimbabwe dollar”.
ABCH said the operations in Zimbabwe contributed BWP 91,2 million top attributable profits.
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