Connect with us
Advertisement

First Capital Bank devours Bank of India

First Capital Bank Botswana is moving to sweep out the footprints of Bank of India Botswana, by taking over its local business, following the Indian banker last year decision to shut down its local subsidiary. 

Bank of India Botswana was said to be among culprits contributing to the Indian born financial institution being dogged by “a sharp rise in non-performing assets (NPAs)” for almost two years since the last quarter of December 2017.  The operations in India, positive and negative, directly affect Bank of India’s subsidiaries including the one in Botswana. As if being marred by failure to compete financially and having ballooning NPAs due to worsening asset quality, the Reserve Bank of India (Indian central bank) has currently raised a red flag on Bank of India and other 10 private bankers by placing stern restrictions on them “not to issue any fresh loans and should hire new personnel.”

According to reports from the Asian country, the Indian central bank is imposing sanctions “as restrictions on couple to enforce certain restrictions on couple of more public sector lenders under the Prompt Corrective Action mechanism due to worsening asset quality and Bank of India has been failing to put down the red flag placed against it. 
 Last year’s reports said Bank of India will close three subsidiaries in Botswana, Uganda and New Zealand in a desperate move to salvage capital.

 According to reports Bank of India is selling its operations so that it can raise P500 million in capital which it can then use to shore up its domestic capital. Since setting its footprints in Botswana six years ago, Bank of India has managed to plough only on e branch cum head office in Botswana. Regarded as one of the top five banks in India is 113 years old and it was once state-owned entity before becoming nationalized in 1969.

First Capital Bank, the entity acquiring, has been ongoing a process of rebranding and seeks to grow according to its Botswana management.  Formerly Capital Bank, First Capital Bank has banking and finance operations in Botswana, Malawi, Mozambique, Zambia and Zimbabwe. It has four branches in Botswana and it will be clenching its claws on the two operations which are run by Bank of India.

First Capital Bank has so far proposed acquisition of 100 percent issued and paid up ordinary shares of Bank of India Botswana to Competition Authority of Botswana. The antitrust body is currently assessing to see if there arises any anti-competition practice in this acquisition.
“According to section 57(3), of the Competition Act, “any person, including a third party not a party to the proposed merger, may voluntarily submit to the inspector or the Authority any document, affidavit, statement or other relevant information in respect of a proposed merger”.

The Competition Authority therefore seeks any stakeholder views for or against the proposed merger, which may be sent within 10 days from date of this publication (12 February 2019),” said the Competition Authority. While investigating the acquisition, the Competition Authority has found that First Capital Bank is a company incorporated in accordance with the Laws of Botswana but controlled by First Capital Bank Plc Malawi; Everglades Holdings (Pty) Ltd, Botswana; Premier Capital Ltd, Mauritius; Prime Bank Ltd, Kenya; and members of the Anadkat Family.

“First Capital Bank Plc is a commercial bank registered in Malawi and listed on the Malawi Stock Exchange, with no other business interests in Botswana. Everglades Holdings (Pty) Ltd is an investment holding company wholly owned by Hemantkumar Kantilal Patel, a British citizen with other diverse business interests in Botswana, not within the banking sector. Prime Bank Ltd is a commercial bank registered in Kenya, with no other business interests in Botswana.

Premier Capital Mauritius Ltd is wholly owned by Hitesh Natwarial Anadkat (the non-executive Chairman of First Capital Bank plc Malawi) with no other business interests in Botswana. The Anadkat family being Hitesh N. Andakat’s wife and children holds British passports with no other business interests in Botswana,” says the local antitrust body. Competition Authority further states that First Capital Bank is a commercial bank, providing deposits, loans to corporates, individuals and Small Medium Micro Enterprises [SMMEs].

First Capital Bank operates a total of four branches and five loan centres across Botswana, specifically in Francistown, Gaborone, Kanye, Mochudi, Mogoditshane and Palapye, according to the antitrust body.  It further states that First Capital Bank has two subsidiaries: Diron Ridge (Pty) Ltd and Jetwig Enterprises (Pty) Ltd; both of which are not in operation.The Directors of FCBL are Hitesh N. Anadkat; Hemantkumar K. Patel; Stephen D. Pezarro (all British); Daniel Swabi, Judy N. Tsonope and Boitumelo K. Tibone (all Batswana), says Competition Authority.

The Directors of Bank of India Botswana, the entity targeted for acquisition by First Capital Bank, are Atanu K. Das; Uddalok Bhattacharya (both Indians); Naseem B. Lahri; Tlhopane N. Motsepe; Felicia B. January and Pauline Oreeditse Motswagae (all Batswana).

Continue Reading

Business

Matsheka seeks raise bond program ceiling to P30 billion

14th September 2020
Dr Matsheka

This week Minister of Finance & Economic Development, Dr Thapelo Matsheka approached parliament seeking lawmakers approval of Government’s intention to increase bond program ceiling from the current P15 Billion to P30 billion.

“I stand to request this honorable house to authorize increase in bond issuance program from the current P15 billion to P30 billion,” Dr Matsheka said. He explained that due to the halt in economic growth occasioned by COVID-19 pandemic government had to revisit options for funding the national budget, particularly for the second half of the National Development Plan (NDP) 11.

This content is locked

Login To Unlock The Content!

Continue Reading

Business

Lucara sits clutching onto its gigantic stones with bear claws in a dark pit

14th September 2020
Lesedi La Rona

Botswana Stock Exchange (BSE) has this week revealed a gloomy picture of diamond mining newcomer, Lucara, with its stock devaluated and its entire business affected by the COVID-19 pandemic.

A BSE survey for a period between 1st January to 31st August 2020 — recording the second half of the year, the third quarter of the year and five months of coronavirus in Botswana — shows that the Domestic Company Index (DCI) depreciated by 5.9 percent.

This content is locked

Login To Unlock The Content!

Continue Reading

Business

Botswana Diamonds issues 50 000 000 shares to raise capital

14th September 2020
Diamonds

Botswana Diamond PLC, a diamond exploration company trading on both London Stock Exchange Alternative Investment Market (AIM) and Botswana Stock Exchange (BSE) on Monday unlocked value from its shares to raise capital for its ongoing exploration works in Botswana and South Africa.

A statement from the company this week reveals that the placing was with existing and new investors to raise £300,000 via the issue of 50,000,000 new ordinary shares at a placing price of 0.6p per Placing Share.

Each Placing Share, according to Botswana Diamond Executives has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from, 7th September 2020, being the date of the Placing Warrants issue.

In a statement Chairman of Botswana Diamonds, John Teeling explained that the funds raised will be used to fund ongoing exploration activities during the current year in Botswana and South Africa, and to provide additional working capital for the Company.

The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.

In Botswana, the funds will be focused on commercializing the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds. This will include finalizing a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.

Drilling is planned for the adjacent Sunland Minerals property and following further assessment of the comprehensive Sekaka database more drilling targets are likely. “This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” he said.

The company Board Chair further noted, “We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”

In addition BOD said the Placing Shares will rank pari passu with the Company’s existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 23 September 2020.

Last month Botswana Diamond announced that it has entered into agreement with global miner Petra Diamonds to acquire the latter’s exploration assets in Botswana. Key to these assets, housed under Sekaka Diamonds, 100 % subsidiary of Petra is the KX36 Diamond discovery, a high grade ore Kimberlite pipe located in the CKGR, considered Botswana’s next diamond glory after the magnificent Orapa and prolific Jwaneng Mines.

The acquisition entailed two adjacent Prospecting Licences and a diamond processing plant. Sekaka has been Petra’s exploration vehicle in Botswana for year and holds three Prospecting Licenses in the Central Kalahari Game Reserve (Kalahari) PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe.

Continue Reading
Do NOT follow this link or you will be banned from the site!