AfriAsia Kingdom seeks shareholder approval to reorganise and raise capital

Home » ECONOMY » Banking & Finance » AfriAsia Kingdom seeks shareholder approval to reorganise and raise capital

By Zimbabwe Investor on November 23, 2013. No Comments

AfrAsia Kingdom Zimbabwe Limited (AKZL) its shareholders’ approval to execute a series of transactions in pursuit of a reorganisation program and to raise capital by way of a rights issue and private placement in fulfilment of the minimum capital requirements set by the Reserve Bank of Zimbabwe.

The series of proposals AKZL is seeking shareholders’ nod include the recapitalisation of up to US$100 million through a rights offer of 5% ordinary shares and 95% preference shares, a share consolidation, share buy back, liquidity support for Kingdom Bank Limited and the re-branding of AKZL brand following the founder Nigel Chanakira’s exit.

AZKL is proposing to emerge as AfriAsia Zimbabwe Holdings Limited in a move it hopes will give it a break with the past while introducing a corporate governance regime in line with Mauritius‘ AfriAsia Bank Limited. The reorganisation is expected to reduce AKZL’s non-performing loans currently on the balance sheet. The company was recently caught-up in legal battle with a telecoms company Valley Technologies over the latter’s failure to repay a US$20 million loan.

The company intents to strengthen AKZL’s most valuable asset and marketing leading micro-lending subsidiary MicroKing.

AfriAsia Bank Limited will be expected to take the lead in driving AKZL forward through representations on the board. AfriAsia Bank Limited is headquartered in Mauritius’ International Finance Centre.

AKZL was established in 1995 as Kingdom Financial Holdings Limited led by Nigel Chanakira. In 1999 it entered the Zimbabwe Stock Exchange through a reverse listing after merging with the country’s then largest discount house Discount House of Zimbabwe. In 2005, Kingdom merged with hotel and retail conglomerate Meikles Africa to form Kingdom Meikles Africa Limited (KMAL). The company demerged 4 years later after a boardroom feud. AfriAsia entered Kingdom in 2012 following a capital raising exercise.