[2008-01-15]  Renaissance Capital eyes 15pc stake in CBZ
RENAISSANCE Capital (RenCap) is reportedly eyeing 15 percent stake in CBZ Holdings previously held by the Libyan Arab Bank, market sources have said.

The sources said although the deal has not gone to the market yet, RenCap would consolidate its shareholding in the banking group through block share purchasing.

This will mean that RenCap will take up nearly 30 percent of the shareholding, up from 14,98 percent the group purchased from ABSA last year.

RenCap will become the largest shareholder in CBZ after the Government of Zimbabwe’s 16,09 percent stake.

An official with RenCap could not confirm the deal but said that the market would "find out".

CBZ chief executive Mr Nyasha Makuvise said they had not yet been informed of the deal.

"Shareholders at times do not keep management informed on the goings-on. I spoke to the Libyan Arab Bank before Christmas but they never intimated anything about this deal," he said.

CBZ is Zimbabwe’s second largest bank by assets. Operationalised in June 2005, the entity emerged out of the reorganisation of CBZ Bank Limited, which became a subsidiary of the holding company.

Prior to this development, the institution had been in operation since 1980 as the Bank of Credit and Commerce Zimbabwe Limited.

It assumed the name Commercial Bank of Zimbabwe Limited in 1991 after the Government acquired total shareholding to avert collapse of the entity.

Thereafter, the bank attained phenomenal growth and progressed to become one of the leading financial service institutions in the country.

Market sources say that RenCap will extend its influence in the country’s banking industry and other sectors through the purchase of shares.

RenCap is also in charge of raising funds (at least £70 million) for LonZim based on its "extensive knowledge of Africa combined with its worldwide presence".

RenCap is a leading investment banking firm with its main operations in Russia.

The group has diversified interests in investment banking, asset management, merchant banking and consumer finance companies.
Source: Copyright(c)2008 The Herald ltd.