In a statement, KFHL said the group had agreed to terms with AfrAsia to invest in the group and approval by most regulatory authorities had been granted.
“Kingdom and AfrAsia Bank Limited have reached an agreement in terms of which AfrAsia will invest $9,5 million in Kingdom (35 percent stake).” KFHL said in a statement.
AfrAsia was launched in 2007 and the main shareholder is Groupe Mon Loisir (GML) while regional strategic partners include Dale Capital Group of South Africa, Intrasia Capital of Singapore and PROPARCO, a subsidiary of the French Development Agency.
GML is the largest conglomerate in Mauritius and was formed in 1939.
“Kingdom has received approvals from the Ministry of Finance, the Exchange Control and the Bank Licensing, Supervision and Surveillance Divisions of the Reserve Bank of Zimbabwe, and the Ministry of Youth, Indigenisation and Empowerment.
“Kingdom is working towards securing the few outstanding approvals which the bank is confident will be granted,” added the statement.
KFHL is seeking $25 million to racapitalise operations. Last year, the group developed a model to raise the money through a rights issue, private placement and public offering.
A rights issue last year raised $2,8 million.
According to the proposal, US$ 4,5 million will be raised through a rights issue, US$7,5 million through a private placement, US$3 million through a public offering during the listing of the company on the stock exchange and US$10 million through the issue of redeemable convertible preference shares to prospective investors.
KFHL, which has since found its feet at the crux of Zimbabwe’s financial services sector, is working on an ambitious expansion programme that will see its tentacles spread and expand in Malawi, Botswana and South Africa.