Malawi Stock Exchange (MSE) – Listed FMB have disclosed intentions to transfer their shares in FMB to Mauritian based FMB Capital Holdings Plc (FMBCH), a move the will see the FMBCH listing on the MSE and FMB delisting on MSE.
Speaking on the sidelines of the bank’s 21 annual general meeting at the bank’s headquarters in Blantyre, FMB chairman Hitesh Anadkat said the bank wants to take advantage of raising money in a deeper Market like Mauritius.
“Capital availability is an issue in Malawi. One thing for sure is that as we grow we will need to raise capital and raising capital is not easy in Malawi because there is not enough money available in Malawi but if we set up in Mauritius, we know it will be much easier to raise capital,” he said.
“We are making Mauritius our legal head office and what this means is that current shareholders will get a share to share swap in FMBCH. They will trade and buy shares as they were previously doing,” he said.
Speaking earlier with Business News MSE operations manager Esnat Chilije said the move may not have any major change on the MSE but on the shareholders of the bank.
“As FMB will be delisting, FMBCH will be listing on MSE hence this will not have any change on the number of listed counters on the MSE.
“But for shareholders the move may widen their investment because currently they only hold shares in FMB but they will hold shares in FMBCH which is also engaged in another transaction,” she said.
FMB which has been trading on the Malawi Stock Exchange (MSE) since 2006 has 2.3 billion shares in issue on the local bourse.
In the period ending December 31 the bank posted a net profit after tax of K5 184 million which was 32 percent up on the figure for 2015 largely due to considerably stronger returns by both interest and non-interest activities. n