Investors eye MSB, Indebank
There was an impressive turnout of investors during the Malawi Savings Bank (MSB) and Indebank Limited’s bidders’ conference held yesterday at Protea Ryalls Hotel in Blantyre.
Government, a majority shareholder in the two commercial banks, through the Public Private Partnership Commission (PPPC), is soliciting bids from a strategic partner.
Currently, government holds 100 percent in MSB, whose management believes the recapitalisation will help it to meet the more stringent Basel II requirements rolled out in January 2014.
In Indebank, government has 41.38 percent; Admarc Investment Holdings holds 25.67 percent, Press Trust 30 percent whereas employees hold 2.95 percent.
Notable participants during the bidder’s conference included FDH Holdings Limited group chief executive officer Thom Mpinganjira, Standard Bank corporate and investment banking head Frank Chantaya, First Merchant Bank (FMB) vice-chairperson Hitesh Anadkat, Nico Asset Managers Limited chief investment officer Emmanuel Chokani, Old Mutual Investment Group general manager Mark Mikwamba and Nedbank (Malawi) Limited managing director Paul Guta.
In an interview after the conference, PPPC chief executive officer Jimmy Lipunga said the commission was impressed with the turnout.
He said there were foreign prospective investors, including those from Tanzania and South Africa, but could not categorically mention the number because some might have been acting on behalf of others.
Said Lipunga: “The commission is looking for a strategic equity partner, an investor with knowledge, experience and expertise in the same business, who will acquire between 51 and 75 percent of the stakes.”
According to Lipunga, the remainder of the shares, after the strategic partner purchase, will be considered for listing on the Malawi Stock Exchange (MSE), employee share scheme and, for MSB, participation of microfinance institutions (MFIs).
Lipunga added that the whole process, including opening of bids, selection of preferred bidder, negotiations and agreement sealing, will be completed by end March this year.
It is unbelievable that Lipunga is doing this. You are concentrating wealth in the hands of a few people while the majority people are poor. We need an organisation that would fight capitalism, greed and inequality.
Malawi is becoming a pure capitalist state serving the wishes of western countries, IMF and World Bank.
Where is the church? CAMA? MEJN? PAC?