NICO Holdings director Felix Mlusu

NICO Holdings director Felix Mlusu

BLANTYRE (Malawi NewsNow)- The general public is being urged to “exercise caution” when dealing with Nico Holdings Limited  shares on the Malawi Stock Exchange as the company is engaged in discussions that may potentially result in the change of 25.1 percent shareholding .

A cautionary statement issued by company secretary Emily Makuta said parties involved in the transaction are related, but could not provide more details of the transaction.

“Shareholders and the general public are, therefore, advised to exercise caution when dealing with Nico Holdings Limited shares until a full announcement is made on the outcome of this intended transaction,” she said.

Nico Holdings Limited, which posted a reduced after-tax profit of K7.3 billion ($16.2 million) in the year ended December 2014 from K9.1 billion ($20.2 million) the year before, has interests in banking, general and life insurance, pension business, investment and technology.

The group owns listed NBS Bank, Nico General Insurance, Nico Life Insurance, Nico Technologies and Nico Asset Managers Limited and has footprints in Zambia, Tanzania and Uganda where it is operating general insurance business.

In 2013, South Africa-based financial services group Sanlam Emerging Market (SEM) Proprietary Limited bought 49 percent stake of Nico Holdings shareholding in general insurance business in Malawi, Zambia and Uganda.

Nico Holdings Limited is 34.24 percent owned by the public (Malawi and foreign), Nico employees trust (Malawi and foreign) own 1.1 percent, International Finance Corporation (IFC) has 11.65 percent, SEM 25.1 percent and Africap LLC with 27.91 percent.