National Bank of Malawi (NBM) has completed the acquisition of 67.05 percent shares in Indebank Limited, a development that will lead to the merger of the banks’ operations.
In a statement signed by NBM company secretary Zunzo Mitole, NBM said the bank has just completed the purchase of the 30 percent shareholding held by Press Trust in Indebank.
Reads the statement in part: “As a result of these transactions, NBM now owns 97.05 percent shareholding in Indebank Limited, with the remaining 2.95 percent being owned by staff of Indebank through an Employee Share Ownership Scheme [Esos].”
Following the acquisition, operations of Indebank will be fused into NBM within 12 months in accordance with the Financial Services Act.
The law does not allow a commercial bank to own or operate another commercial bank.
Before NBM bought Indebank Limited, government had 41.38 percent shares, Admarc Investment Holdings held 25.65 percent, Press Trust held 30 percent while employees held 2.95 percent. n