News Column

Chanakira, Afrasia Feud Drags On

June 6, 2014

AFRASIA Bank has failed to beat the deadline to settle the $12,5 million for shares held through banker Mr Nigel Chanakira's Crustmoon which would have concluded the long running divorce of the two parties.The deadline for the separation of AfrAsia and Mr Chanakira through the repurchasing of 289 133 648 of AfrAsia's issued shares held by Crustmoon for $12,5 million was March 31.

It comprised a cash consideration of $2,5 million and the balance through an indirect cession of certain claims against loan debtors and related security assets held by Kingdom Bank to Mr Chanakira were set to conclude the restructuring of the financial institution.

The deal also involved the transfer of the Kingdom Trademark to the banker.

But AfrAsia said the March 31 deadline set last year had been missed and is now seeking shareholder approval to extend to September 30 this year.

The bank said the failure to beat the deadline was a result of delays in fulfilment of "certain conditions precedent" without giving more details.

"The extension of the deadline was necessitated by delays in the fulfilment of certain conditions precedent to the implementation of the transaction. Directors are confident that the new deadline would allow for flexibility in closing the transaction," AfrAsia said.

The bank did not disclose the conditions which have delayed the implementation of the deal.

Mr Chanakira refused to comment on the delays in concluding the deal.

"Get a comment from AfrAsia. I simply have no comment," said Mr Chanakira.

Afrasia directors have called an Extraordinary General Meeting on June 27 to ask shareholders to amend the resolution passed at the EGM held on November 29 last year which related to the restructuring of the AfrAsia Kingdom Zimbabwe Limited through repurchasing of 289 133 648 of its issued shares indirectly held by Crustmoon through AKHL for $12,5 million.

The total consideration payable by the company comprised of $2,5 million cash and the balance through an indirect cession of certain claims against loan debtors and related security assets held by Kingdom Bank and transfer of the Kingdom Trademark.

AfrAsia is also seeking shareholder approval to raise capital likely to be channelled towards the $2,5 million cash payment owed to the businessman.

The directors want authority to raise additional capital by way of offer and issue to existing AZHL shareholders and new investors perpetual, non-cumulative convertible preference shares created or to be created out of any existing pool of authorised but unissued ordinary shares with such further rights, preferences and limitations.

Mauritius-based AfrAsia Holdings Limited in April injected $20 million into the local operations. The injection raised its total investment to $100 million translating to 62,5 control of the financial institution from 36 percent.

At the EGM, shareholders will also be asked to ratify the amendment of authorised share capital to $4,2 million comprising 2,1 million perpetual, non-cumulative, non-participating, convertible preference shares and 2,1 million ordinary shares, all of a nominal value of $0,001 each.

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Source: AllAfrica

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