Public Service Pension Trust Fund, a stand-alone contributory pension scheme for public servants, has acquired a 17.58 percent stake in Mpico plc at K7.48 billion, making it the second largest institutional investor in the property development and management company.
The acquisition has come to light after a notice from Mpico plc last week warning investors to exercise caution when trading in the company’s shares as the transaction would have an impact on the share price currently at K18.52.
Mpico plc notice shows that through the transaction, Public Service Pension Trust Fund has bought 17.58 percent of Old Mutual (Malawi) Limited equity, which adds to its initial 1.88 percent to increase to 19.55 percent.
Reads the notice in part: “Mpico plc wishes to notify the general public of acquisition involving the purchase of a substantial shareholding of 17.58 percent in the company by Public Service Pension Trust Fund from Old Mutual Malawi Limited on November 28 2024 via a trade on the MSE at K7.48 billion.”
The statement indicates that the rationale of the transaction is that Old Mutual Malawi Limited aligns with its broader strategy to enhance capital regulatory compliance while allowing another key institutional investor in Malawi Stock Exchange-listed Mpico plc.
Reads the notice signed by Mpico plc secretary Chifundo Kalaile: “For Public Service Pension Trust Fund, as one of the largest pension fund investors in Malawi, it offered the opportunity to acquire a meaningful interest in a leading property company that would otherwise be unobtainable on the open market.”
The pension fund’s principal officer George Jim in an interview yesterday said its strategic plans target long-term investment and property is one of the key focus areas.
“Indeed the fund is investing in real estate as one of the long-term investment plans for it as stipulated in our strategic plans and investment policy statement,” he said.
Jim said apart from real estate, the fund has a number of portfolios and the mixture of investment channels gives it a better positioning in terms of the withdrawal period in relation to liquidity of the fund.
He also confirmed that the fund earlier this year acquired 100 percent shareholding in Sigelege Boutique Hotel in Lilongwe.
Investment analyst Brian Kampanje said “the liquidity of the MSE has been boosted in view of the significant number of shares changing hands as evidenced by Old Mutual offloading some of its shares in Mpico”.
Equity investor Joe Maere, who is also a member of the Minority Shareholder Association of Listed Company, described the move as positive, adding that the shareholder would bring new ideas to the company.
Real estate expert and Knight Frank managing director Desmond Namangale said the disposal of shares plays a crucial role in portfolio management.
With the transaction, it means Old Mutual Life Assurance Company remains the majority shareholder in Mpico plc with a 42.98 percent stake followed by Public Service Pension Trust Fund at 19.46 percent, Old Mutual Malawi Limited at 11 percent, the public has 21.55 percent while Lincoln Investment Limited has 5.01 percent.
