The Malawi Stock Exchange-listed financial institution, FDH Bank Plc, has purchased Ecobank Transnational Incorporated’s (ETI) shares in Ecobank Mozambique S.A.
In a statement accessed by BrandSpur banking and finance news desk, submitted to the Nigerian Exchange Limited (NGX) on Tuesday, the bank declared its intention to withdraw from Mozambique.
The sale, according to the Company’s Secretary, Madibinet Cisse, is a strategic change in ownership and operations, and no disruption to banking services, assets, or employees is anticipated. He states: “EMZ is a licensed commercial bank in Mozambique, supervised and regulated by the Central Bank of Mozambique. EMZ has 4 branches located in the biggest cities of Mozambique.
“The bank has been operating in Mozambique since 2000, when it was incorporated as Novo Banco SARL, before changing its name in 2014 to Ecobank Mozambique SA, following an acquisition by ETI.
“FDH Bank Plc is listed on the Malawi Stock Exchange. The Bank provides superior digital banking, personal and business banking, corporate and institutional banking, treasury and investment banking, global markets and trade finance, as well as corporate advisory services,” Cisse added.
He stated that FDH Bank Plc’s retained earnings will be used to cover the entire cost of the acquisition. According to him, the deal has all the required regulatory approvals, but it is still pending precedent and customary conditions, and it should be finished by the 2025 fiscal year.
Cisse went on to say: “Upon completion, FDH Bank PLC will assume effective control of Ecobank Mozambique SA. This transaction has been conducted on an arm’s length basis and does not involve any related parties.
“Both FDH Bank Plc and ETI remain committed to keeping stakeholders informed of any material developments in line with their respective stock exchange listing requirements,” he added.
Continuing, the choice is in line with Ecobank’s dedication to its growth, transformation, and return strategy, according to Jeremy Awori, CEO of Ecobank Group. According to him, the departure will guarantee that the bank maintains its position as a significant and competitive participant in the markets in which it works.
He had this to say: “As a Pan-African financial institution, we continuously assess our operations to drive sustainable growth while maintaining our core mission of driving Africa’s financial integration and economic growth.
“The transfer of our Mozambique stake to FDH Bank PLC was given deep consideration to ensure the least disruption and the best outcome for employees, customers and operations.
“We are exploring strategic partnerships with FDH Bank to maintain Mozambique’s access to our pan-African digital ecosystem for seamless cross-border payments,” Awori added.
Although the bank’s direct presence in Mozambique is evolving, he continued, the bank’s steadfast dedication to promoting pan-African financial integration and economic expansion throughout the continent is stronger than ever.
