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Mr Chanakira

Harare Bureau
AFRASIA Holdings has entrenched its footprint on the Zimbabwe financial landscape and the economy in general after assuming controlling interest in AfrAsia Kingdom Limited, which will be renamed AfrAsia Zimbabwe Limited.
The Mauritius-based financial group upped its interest in AfrAsia Kingdom Limited to 54 percent from 35 percent after acquiring 30 percent shareholding previously held by Kingdom Financial Holdings founder Mr Nigel Chanakira.

AfrAsia has wasted no time in declaring its interest to invest in Zimbabwe for the long haul, immediately announcing a $20 million cash call in the next few weeks and an immediate $10 million line of credit to its local units.

Parties involved could not reveal prices involved but said it was a cash and equity swap deal in which Mr Chanakira is exiting AKZL and taking over of Kingdom Bank Africa in Botswana.

He will takeover AKZL’s 35,7 percent stake in Botswana-based Kingdom Bank Africa Limited through family investment vehicle Crustmoon Investments.

This brings to full circle Mr Chanakira’s sentimental flirtation with the institution he founded some 20 years ago, but briefly exited to invest in and work at Meikles Africa before bouncing back two years ago when relations there turned sour. While many would have expected Mr Chanakira to remain sentimental or somehow become emotional about the unfolding reality, the entrepreneur seemed on cloud nine and even boasted that he had landed a splendid deal under the circumstances.

Certainly, this represents a massive windfall for a man who seemed down and out following the botched deal with Meikles and 5 percent he retained in KFHL yet he required not less than $30 million to buy back shareholding in the institution he founded.

After agreeing to sell his interest in KFHL Chanakira took up small shareholding in the then Meikles Africa and to spice it up was made chief executive of the local conglomerate.

But the marriage, ironically also lasted a mere 18 months before the parties called it quits following differences over procedural issues regarding investments outside Zimbabwe.

So to bounce back and reclaim controlling interest in an institution that had never ceased to be synonymous with its founder and make a killing out of it was a major coup for Chanakira.

After all, Mr Chanakira said he would not have been able to follow his rights in view of the regulatory requirement to ensure $100 million minimum capital for banks by June 2014 of which $50 million for June 2013 is due.

Interestingly though, his legacy will be indelible more so after leaving the institution in the hands of a reputable and resource rich financial conglomerate.

Mr Chanakira said AfrAsia Zimbabwe entities and the economy at large will benefit immensely from the Mauritius based entity, which has at least $1 billion in cash resources.

AKZL deputy chief executive Mr Kamben Padayachy said AfrAsia would soon extend $10 million in lines of credit and float a rights issue that it will lead.

Its acquisition of controlling stake in AKZL has already been approved by the Reserve Bank of Zimbabwe, which reportedly is pleased with the shareholders commitment to Zimbabwe.

Mr Chanakira will step down as director of all AfrAsia Kingdom Holdings Limited and AKZL entities with immediate effect, but will retain the “Kingdom” Trademark from AKZL.

AfrAsia Kingdom Zimbabwe Limited will be rebranded to “AfrAsia Zimbabwe Holdings, Kingdom Bank to “AfrAsia Bank and Kingdom Asset Management” to “AfrAsia Capital Management.