FDH says on track with MSB acquisition obligations
FDH Financial Holdings Limited says it is on track with most of the obligations it needed to undertake in the acquisition of the previously wholly State owned Malawi Savings Bank (MSB).
Briefing journalists in Blantyre yesterday, FDH Holdings group chief executive officer Thomson Mpinganjira said by June this year, the group—which integrated MSB into its brand FDH Bank—will have invested about K26.7 billion ($30.7 million) in the acquisition, integration, stabilisation, optimisation and recapitalisation of FDH Bank Limited following the deal.
He said after reviewing the bank’s capital requirements as at December 31 2016, the holding company injected K6.6 billion in FDH Bank Limited on March 31 2017 as part of the recapitalisation requirement with K5 billion to be pumped in by May 31 2017.
Said Mpinganjira: “K1.1 billion of the K6.6 billion is on the restructuring of the group that has led to FDH Holdings acquiring 100 percent of FDH Money Bureau Limited from FDH Bank Limited.
“The balance, K5.5 billion, is direct equity injection. This is the first phase of the recapitalisation of the bank. The second and final phase will be completed on 31 May 2017 through an additional capital injection of K5 billion ahead of the 30 June 2017 deadline set by the registrar of financial institutions in Malawi.”
However, despite meeting all the conditions of the agreement the group signed with the bank, Mpinganjira stated that there were a lot of things that were hidden by MSB management during the sale, but argues that it was a risk FDH Holdings took and does not regret it.
In 2015, FDH Financial Holdings acquired MSB in 2015 and is the largest financial institution in the country by footprint with 53 branches and points of representations in 27 of the country’s 28 districts.
