Financial Gazette (Harare)
Shame Makoshori
27 June 2009
Harare — NIGEL Chanakira is wasting no time in finding potential suitors to recapitalise Kingdom Financial Holdings Limited (KFHL) and buy-out shareholders who may want to dispose of their stock in the aftermath of Kingdom Meikles Africa Limited (KMAL)'s de-merger which went through on Monday.
Well placed KFHL sources told The Financial Gazette this week that the banking group which operates a discount house, a stockbroking firm and an asset manager had started laying the groundwork for heavy funding requirements in the post de-merger era.
A former chief executive officer (CEO) of KMAL, Chanakira's dream to list the group on Wall Street suffered a major setback on Monday when shareholders gave the thumbs up to its unbundling following bitter boardroom fights.
Ninety-eight percent of KMAL shareholders, including minorities, voted in favour of the termination of the marriage consummated in December 2007.
Even if John Moxon's investment vehicles had not voted, the proposals could still have passed by a 96 percent vote.
Moxon is the former KMAL chairman who directly and indirectly controlled 43 percent of the group through five investment vehicles.
The Financial Gazette can however, reveal that KFHL is among several Zimbabwean banks targeted for partnerships or takeovers by one of the leading South African banks.
The South African bank (name supplied) is understood to have opened negotiations with KFHL for possible investment.
If concluded, the deal could help recapitalise KFHL, which will soon be re-listed on the Zimbabwe Stock Exchange by way of introduction.
The others are closed banks like Time and Royal.
Chanakira, who many see as the biggest loser in the transaction, had bigger dreams for the merged group - a 25 year vision to transform it into a formidable force in Africa, a listing on Wall Street, the world's largest bourse, and a much bigger dream to take on the best in the world.
He admitted for the first time that he went through a taxing period "after throwing in all there was to throw" in the fight but the final scheme of arrangement as proposed by Econet Capital Holdings (ECH) brought the matter to rest.
Even in defeat, the KMAL CEO remained defiant; telling a packed Meikles Hotel room the deal remained imperfect because an array of issues had remained unresolved, citing the pending legal issues.
He vowed he had no regrets over his actions as his behaviour had remained 'Christian like'.
The maverick banker had no option, absolutely.
He was facing a friend, Strive Masiyiwa - Econet founder - who has fought and won major legal battles in Zimbabwe and across the globe with no defeat.
These include one against President Robert Mugabe's government in 1998 to win the first private licence to run a mobile firm -Econet Wireless Holdings.
After striking a deal with minority shareholders who threatened to block ECH's proposals following a year of infighting, the response from voting shareholders was overwhelming.
The alliance between Masiyiwa and Moxon is however seen marking a turn in relations between the Econet boss and Chanakira, who had earlier resisted the de-merger of the diversified group.
At the extraordinary general meeting (EGM) on Monday which approved the unbundling, ECH chairman, Tawanda Nyambirai publicly denounced Moxon's specification, describing it as "immoral".
Government is yet to respond to the dramatic turn of events at the EGM at which Moxon was allowed to vote against objections from the investigator, BCA Consulting.
BCA had written to KMAL chairman Muchadeyi Masunda on May 27 and June 19 demanding that Moxon would not vote while under specification.
Monday's resolutions will mean that KMAL shareholders will get one KFHL share for every one held through a dividend in specie.
But the shareholders have to repay a US$22,5 million held in the financial services concern for capitalisation.
The KFHL shares will have to be redeemed as preferential shares to Meikles.
KFHL equity stood at US$34 million, including the US$22 million as at December 31 2008.
ECH says should more capital be required once the transfers are affected KFHL will know what to do.
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As a devout christian who has inspired hundreds if not millions i would have expected Nigel Chanakira to seek counsel from his christian business colleagues when marriage problems rocked KMAL.God answers prayers.For him to have rushed to politicise the issue was not only ill advised but a negation of christian principles he seems to espouse.Life is not about what happens to us but its all about what we do with what happens to us.I sympathise with him and wish him well in his battles.May God meet him at the point of his needs.I begin to realise the power of God,s words when the apostle Paul says human wisdom is foolishness to God.Despite all the acumen and intellect in Chanakira these events has revealed his other side, he isnt an angel after all.As a fellow christian i am with him in prayer.The Bible says whosoever is born of God overcomes the world. To Nigel remember this:The next time such battles beckon in the horizon know who to consult, know where to seek comfort,know where to seek protection.IN GOD