HARARE – AfrAsia Kingdom Zimbabwe Limited (AKZL) shareholders have approved Nigel Chanakira’s $12,5 million exit package.
In September, Chanakira ? a prominent banker and founder of Kingdom Financial Holdings Limited, now AKZL — disposed of his 30 percent stake in the financial group, indirectly held through his family investment vehicle Crustmoon.
Before his departure, Mauritius-based AfrAsia Bank Limited (ABL) held a 35 percent stake in AKZL acquired in January last year through a $9,5 million deal, leading to a rebranding.
“It was resolved that the ownership of AKZL be restructured by repurchasing 289 133 648 issued shares indirectly held by Crustmoon through AKHL for a total consideration of $12,5 million,” said AKZL’s company secretary Daniel Makono following an extraordinary general meeting held on Friday.
However, Chanakira will only get $2,5 million in cash and the balance through an indirect cession of certain claims against loan debtors and related security assets held by Kingdom Bank Limited (flagship subsidiary) and transfer of the Kingdom trademark.
As part of the deal, AKZL will in turn sell its remaining interest in the Botswana-based offshore bank, Kingdom Bank Africa Limited (KBAL) to Crustmoon.
The restructuring, when completed, will result in Crustmoon completely exiting AKZL and in the transfer of the group’s 35,7 percent interest in KBAL.
Following AfrAsia’s increased stake in AKZL — with the blessings of the Reserve Bank of Zimbabwe — Chanakira steps down as director of all AKZL entities with immediate effect, but will retain the “Kingdom” trademark from AKZL.
AKZL will be rebranded to AfrAsia Zimbabwe Holdings, Kingdom Bank to AfrAsia Bank and Kingdom Asset Management to AfrAsia Capital Management.
The deal will also result in restructuring of the board and management of AKZL and KBL, but AKZL chief executive Lynn Mukonoweshuro will retain her post at the helm of the group.
AfrAsia will also seek to inject $100 million through a rights offer and private placement which are subject to shareholder approval.