BBS conversion imminent

SHARE   |   Sunday, 01 February 2015   |   By Staff Writer
Cross Kgosidiile Cross Kgosidiile

A tender by the Ministry of Finance and Development Planning for an advisor on demutualisation closed on January 23, 2015.
As a major shareholder in Botswana Building Society (BBS), which is advanced in its quest to demutualise, government has found itself requiring an adviser for its political authority Minister Kenneth Matambo and his executives who oversee the property mortgage-giving parastatal. Government requires an independent expert advice to evaluate the value and gains of BBS’s intended shift.   
This is seen as a critical stage of the parastatal’s demutualisation process which will culminate with the BBS Board calling a Special General Meeting for the shareholders where they are expected to take a decision on proceeding with the transformation. BBS wants to transform from a Society to a commercial bank, subject to government approval and licensing by Bank of Botswana.
Chairman of BBS Board of Directors, Cross Kgosidiile said in the Society’s 2013/14 Annual Report that was advancing in its programme.
“We will call a Special General Meeting to ask for the required resolution from shareholders for the conversion. We made a lot of progress with regard to preparatory work for the implementation of the demutualisation project. Most importantly, legislation enabling the demutualisation process was passed by the Parliament of Botswana and for its part the Society was able to conclude the award of a tender for the provision of demutualisation consultancy services. The tender was awarded to PriceWaterhouseCoopers, a reputable firm of accountants, auditors and corporate consultants with strong knowledge and experience in the demutualisation of entities similar to BBS. We will, therefore, be working with PriceWaterhouseCoopers in this regard while our legal advisors will be Armstrongs Attorneys, an established corporate law firm in Botswana,” he said.

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