BBS moves to finish off BIFM Capital

TSHIRELETSO MOTLOGELWA
Staff Writer | Friday March 16, 2012 00:00

BBS corporate affairs manager, Sipho Showa has confirmed that the bank is redeeming the shares: 'We are redeeming those shares at the end of this month,' Showa told Mmegi yesterday. 'Our position hasn't changed.'The news induced fears that the move would negatively affect BIFM Capital, the BIFM subsidiary that the financial institution owns with Capital Management Africa (CMA).

The owners of CMA are dual South African and British citizen Timothy Gordon Marsland and South African Rhys Carr. The BBS announcement follows hot on the heels of a failed attempt by BIFM Capital to have the bank stopped from redeeming the P150m shares until the case before the High Court concerning the shareholding agreement between the two is settled.

BBS wants the agreement declared null and void while BIFM Capital maintains that the agreement is valid. Sources say over the last few weeks, BIFM officials seriously considered severing their agreement with CMA, choosing to do so by buying out the latter. Meanwhile, it is said that in light of the losses that Botswana Life, the original grantors of the P150m investment, is demanding repayment. Mmegi questions sent to Botswana Life have hit a blank while BIFM communication manager Tebogo Keepetsoe has also declined commenting on the details of the agreement as it stands.

'It is too early for us to comment on this matter,' Keepetsoe said. 'We are operating in a dynamic environment and continually evaluate any opportunities to enhance shareholder value. 'However, it is important to note that even in the difficult environment, the BIHL Group has managed to perform exceptionally well. Profits went up 42 percent from 2010 to P471,330,000. And a dividend of 41thebe per share has also been declared.' CMA's Marsland has also declined to comment.