Alliance Capital Limited (ACL), an investment and portfolio management firm, has sold 45 percent of its stake to South African-based financial services group Vunani.
ACL chairperson Peter Barratt told journalists in Blantyre on Thursday that the move to sell the stake to Johannesburg Stock Exchange (JSE)-listed Vunani is aimed at expanding its footprint.
The development means that Vunani, as a majority shareholder, has 45 percent stake followed by Prudential Investments at 26 percent, Augustine Willand Investment Services 16.8 percent, Accord Trust 7.2 percent and employees under the Employee Share Ownership Trust have five percent.
Vunani has more than 16 years experience in asset management, investment banking, property and stock broking, according to Barratt.
He said with no backing from other big players on the market such as banks and corporates, the perception on the market was that ACL company was a small firm.
“We are bringing in a major player from South Africa with vast experience in our product range and beyond which we will also extend to investment banking and property management.
“The move is also expected to increase our workforce which is contrary to what most people would expect. We currently have a workforce of 14 and we should be able to increase after this transaction,” said Barratt.
A representative of Prudential Investment, Thomas Daniel, said the transaction has also seen the formulation of an Employee Share Ownership Trust.
In his remarks, Vunani chief executive officer Ethan Dube said that the company has no intention of changing the brand in Malawi, but will focus on setting out a strong core business in the country as is the case in Zimbabwe, South Africa and Zambia where they are currently operating.
“This development presents good opportunities and stable business that ACL has to offer on the market.
“We hope to strengthen the activities in the company through mergers and acquisition, securities trading as well as import systems and knowledge in the South African market,” he said.
Dube said Vunani is eyeing Namibia and Botswana as the next destinations in its expansion bid.