LILONGWE -In a bid to grow its transactional banking base, the National Bank of Malawi has bought 75% of Inde Bank therefore making it the strategic owner with the remaining 25% left for the government.
Previously government owned 100% shares of Inde Bank which has branches of its services in the country.
The sale of Inde bank has been done concurrently with MSB sale to FDH Holding Limited of local business tycoon Thom Mpinganjira.
In a statement released today, Minister of Information Kondwani Nankhumwa said the signing of the agreements today is not a waste as both MSB and Inde bank have gone to Malawian citizens with the two institutions registered on Malawi Stock Exchange MSE.
National Bank of Malawi NBM Chief Executive Officer George Partridge signed the deal on behalf of NBM.
“Following this development, Government shall proceed to sell seventy five percent (75%) of its shares to the winning bidder and reserve the remaining twenty-five percent (25%) for the public.
“The general public is assured that the sale of these shares especially in MSB will not, in any way, result in closures of any branches of the bank currently operating throughout the country”, said Nankhumwa.
Meanwhile Nankhumwa said Government has created a Special Purpose Vehicle, an entity made up of prominent Malawians, to deal with bad debts relating to MSB.
“Government is pleased that the ownership of the MSB and INDE Bank respectively will remain in the hands of Malawian companies.
“The public may wish to be informed that part of the ownership of FDH Holdings is Old Mutual which is listed on the Malawi Stock Exchange (MSE).
“NBM is also listed on the same, this means all Malawians that have shares on the MSE will be participating as owners of the banks. In other words, the banks have essentially been
sold to the public.
“This development augurs well with the Government’s policy of empowering local investors as Malawi prepares for large scale investment as evident in the multi-billion expressions of interest recorded in the Malawi Investment Forum we just had”, said Nankhumwa.