AKZL capitalisation approved

AKZL capitalisation approved
Published: 02 December 2013
Afrasia Kingdom Zimbabwe Limited (AKZL) shareholders have approved the group's $100 million capitalisation exercise despite initially raising concerns over the bank's bad loan book and name change.

Speaking at the group's incident-filled extra-ordinary general meeting in the capital on Friday, which among other issues approved the repurchasing of shares owned by a company linked to founder Nigel Chanakira, some shareholders said management should up the gear in managing risk after the company incurred losses due to rising non-performing loans.

The repurchase of Crustmoon's 30% in the financial services group is expected to pave way for the group's two-pronged recapitalisation exercise involving a private placement and rights offer.

Under this initiative, $5 million will be raised through a rights offer underwritten by AfrAsia Bank Limited (ABL) and $15 million via a private placement.

The group will undertake subsequent phases of private placement to raise $80 million.
- newsday
Tags: Chanakira,


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