Finance Bank Zambia is in talks to buy a controlling stake in a small Zimbabwean bank, officials said Thursday.
Finance Bank of Zambia, which is minority-owned by Swiss Reinsurance, has targeted CFX Bank of Zimbabwe, which is seeking to boost its capital to meet a new higher ceiling set by the central bank.
Officials said Swiss Reinsurance was backing the bid by the Zambian bank, and would likely finance the transaction.
They said Finance Bank of Zambia consultants had already carried out a due dilligence exercise on CFX Bank, and were expected to present their findings to their principals shortly.
According to PANA, The central bank in Zimbabwe, fearing possible collapse of banks in the face of tight competition in the sector, has raised the capital requirements for banks, forcing a number to look for new investors.
CFX Bank managing director Emmanuel Tagarira confirmed the talks and said the bank, which is listed on the Zimbabwe Stock Exchange, “will inform the market at the appropriate time.”