By George Lumwira
National Bank of Malawi-NBM has completed the acquisition of Akiba Commercial bank –ACB of Tanzania at a reported US $7.3 million.
This means National bank has a 51% controlling stake in ACB having sealed the deal worth K5.5 billion in local currency.
In a statement, the local bank says the acquisition is in line with its current strategic plan which has regional expansion as one of its key thrusts.
“This acquisition is expected to bring about growth in business for both NBM Plc as it upscale the business of ACB to the standards of NBM plc,” reads the statement in part.
NBM is listed on the Malawi Stock Exchange with a market capitalization of K304 billion. The investment in ACB is approximately 2% of the high street giant’s current market capitalization.
ACB is a bank in Malawi’s Northern neighbor, operating a range of banking and financial services and was established in 1997 with 300 Tanzanian entrepreneurs as its initial shareholders.
“Shareholders are, however, advised that negotiations are continuing for an additional stake in ACB.
“They are therefore advised to continue to exercise caution in dealing in their shares in the Company and consult professional advisors before dealing in their shares until such time as the result of the negotiations are known,” further read the statement.
Earlier, NBM’s Board Chairperson George Partridge told Capital FM that the completion of the deal was faced delays due to Covid-19 pandemic.
Meanwhile, capital market analyst and Operations Manager for Alliance Capital Limited Thokozani Saulosi describes the move as beneficial to both the local economy and National Bank shareholders.