The Zambian government has sold its largest state-run commercial bank to Rabobank of The Netherlands in a deal worth more than $8-million, a minister announced on Friday.
Rabobank has taken over the management of the Zambia National Commercial Bank with immediate effect after wrapping up protracted negotiations, Commerce Minister Kenneth Konga said.
”Rabobank, in making their bid, took into account some adjustments such as consultancy fees to arrive at the net bid of $8 250 000,” Konga said.
The Dutch firm will effectively take control of 45% of the shares with management rights, while 25% of the shares will be floated on the Lusaka Stock Exchange with the government retaining the minority shares.
The opposition and trade unions in Zambia had protested against the sale, fearing the new owners could cut jobs and close unprofitable branches in rural areas.
Rabobank has promised to maintain the rural branches, which service the poor communities throughout the country. — Sapa-AFP