Business Reporter
THE Deposit Protection Corporation has allayed fears that discussions for the disposal of former AfrAsia subsidiary, MicroKing, have collapsed, saying the deal is on and ready for signing.
DPC chief executive John Chikura confirmed yesterday the deal was on course, adding the deposits insurer has since accepted the foreign investors’ purchase offer of $3,4 million.
According to the Reserve Bank of Zimbabwe, the consortium of investors angling for entire shareholding in the micro-finance institution, will invest a total of $22 million in MicroKing.
Prospective investors, AfricInvest of Tunisia and France-based Microcred, have confirmed their readiness to sign the agreement for acquisition of the local micro-finance lender.
AfricInvest official Mr Julius Tichelaar said in recent correspondence to Mr Chikura that their legal team is working on the draft share purchase agreement and framework for the transfer of the assets of the micro finance lender.
“Indeed thank you for your email and the positive feedback on the offer. As previously discussed, our lawyers have been working on a draft Share Purchase Agreement which you will find attached for your perusal,” Mr Tichelaar said.
Microcred CEO Mr Arnaud Ventura also expressed his desire to put pen to paper for the acquisition of MicroKing saying his team was ready to finalise the agreement and sign it.
“Thanks for your email and positive answer. Our team is ready to finalise the agreement with your team. I am ready to sign as soon as the agreement is finalised,” Mr Ventura said.
In correspondence exchanged last week the DPC CEO, responding to an email from Mr Ventura, founder of Microcred, advising that DPC had accepted the France incorporated micro-lender’s offer of $1 million cash, $2,4 million on transfer of assets, giving total consideration of $3,4 million.
“We are drafting the final agreement for signature by both parties, please advise when you will be ready to sign,” he said.
Mr Chikura refuted media reports that the deal had collapsed, describing as grossly untrue claims that there was no transparency in the manner the transaction is being handled. The allegations stemmed from a letter which had been written by the company’s employees.
In his Mid-Term Monetary Policy Statement in July Reserve Bank governor Dr John Mangudya said there had been significant progress regarding MicroKing, a wholly owned micro-finance unit of AfrAsia Bank Zimbabwe (in liquidation).
He said, MicroKing had secured investors, Microcred and AfricInvest, a consortium of investors who intent to inject $22 million.
The proposed investment in MicroKing will result in a stronger micro-finance institution, which is sufficiently resourced to contribute significantly to financial inclusion and the consortium had put in place a development programme to allow them to retain all employees of MicroKing.
MicroKing was left facing an uncertain future after its parent firm was put under liquidation due to financial constraints, forcing the bank to surrender its licence early this year.