First Capital Bank offers to buy Bank of India (Botswana)

Seeks growth after rebranding


Junior banking outfit, First Capital Bank Botswana has made an offer to buy all shares in Bank of India Botswana for an undisclosed sum of money.

The Competition Authority has received a merger notification for the proposed acquisition of 100 percent issued and paid up ordinary shares of Bank of India (Botswana) Ltd (BOIB) by First Capital Bank Ltd (FCBL).

Explaining the entities involved in the merger, FCBL has advised the Competition Authority that the acquiring enterprise, FCBL, is a company incorporated in accordance with the Laws of Botswana. FCBL is 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.

According to the acquisition notification, 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 Andakat’s wife and children holds British passports and they too have no other business interests in Botswana.

FCBL is a commercial bank, providing deposits, loans to corporates, individuals and Small Medium Micro Enterprises [SMMEs]. FCBL operates a total of four branches and five loan centres across Botswana, specifically in Francistown, Gaborone, Kanye, Mochudi, Mogoditshane and Palapye. FCBL 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 Pezarro both British nationals. Batswana Directors include Daniel Swabi, Judy N. Tsonope and Boitumelo Tibone.

The target enterprise, BOIB, is a company incorporated in accordance with the Laws of Botswana. BOIB is a subsidiary of Bank of India, a company registered in India. BOIB is a commercial bank, with one branch come Head Office located in Gaborone. It provides deposits, loans and advances to corporate and retail customers.

In accordance with the Competition Authority requirements of disclosing interested parties the acquisition documents reveal that the Directors of BOIB are Atanu K. Das; Uddalok Bhattacharya (both Indian nationals); Naseem B. Lahri; Tlhopane N. Motsepe; Felicia B. January and Pauline Oreeditse Motswagae (all Batswana).

The bank recently rebranded from its previous name Capital Bank and now operates under the banner First Capital Bank.

First Capital, Chief Executive Officer, Jaco Viljoen said the bank’s new image will not influence its operations or change its focus on clients’ needs. “We will retain our focus on relationships, as we work alongside our clients and communities to help them achieve their extraordinary,” said Viljoen. However, the rebranding was implemented alongside a new strategy aimed at growing the bank’s business, which has prompted the ongoing acquisition aimed at increasing the market share.

With a total 2.5 billion pula in assets on the local market and 2.2 billion pula in clients’ deposits, the bank has plans to keep pace with growth both locally and in the region, providing integrated services across all the five countries where its footprint is found. “We do not expect anything to change if not improving it.”