National Bank of Malawi plc, the leading bank in the country, has completed the acquisition of a 51 per cent controlling stake in Akiba Commercial Bank plc of Tanzania for a consideration of US$ 7.31 million through a share subscription.
National Bank of Malawi plc clarify in its cautionary statement to investors that the acquisition is in line with the banks’ present strategic plan which has regional expansion as 1 of its key thrusts.
“The acquisition is expected to bring about growth in business for both National Bank of Malawi plc and Akiba Commercial Bank plc as it upscales the business of ACB to the standards of National Bank of Malawi plc,” the statement reads.
National Bank of Malawi plc is listed on the Malawi Stock Exchange with a market capitalization of MWK 304 billion. The investment in Akiba Commercial Bank plc is approximately 2% of the National Bank of Malawi plc’s current market capitalization. However, negotiations are ongoing for an additional stake in Akiba Commercial Bank plc.
Akiba Commercial Bank plc was established in 1997 and offers a range of banking and financial services in Tanzania. It has strong SME roots and operates 18 branches across the country.
