Off the wall of Sunduzwayo Madise: Old Mutual owns part of FDH Bank the new owners of Malawi Savings Bank
The Press Release from Government updating on the sale of Malawi Savings Bank (MSB) and Indebank emphasises that Malawians may wish to know that Old Mutual owns a part of FDH Bank. My question then is how much does Old Mutual actually hold in FDH? Is it a controlling stake (10% or more)?
I ask thus because I am aware that Old Mutual also has a controlling stake in Nedbank, another (rival) bank .
And according to the Banking Act an entity cannot have a controlling stake in two or more banks
There is therefore need to clarify on this.
Now to say just because Old a Mutual is listed on the Malawi Stock Exchange that means Malawians will have a chance of owning a piece of FDA via Old Mutual is logic that I am failing to comprehend.
Exactly how is this possible?
If one invests in Old Mutual shares via the Stock Exchange or a Stock Broker, then one buys Old Mutual shares and not shares of any business that Old Mutual has invested in.
I am aware that in fact Old Mutual has investments in several businesses in Malawi ad part of its portfolio.
And Old Mutual can decide to disinvest at any time without affecting the share structure of its shareholders
Therefore I fail to see the direct connection or nexus between buying shares in Old Mutual and sale if MSB to FDH.
And by the way, I take it that Government is fully aware that the price of Old Mutual shares is beyond the average Malawian stock investor.
They are what can be described as in a class of Malawian blue chip stocks.
And unlike with a Public Officer where the Privatisation Commission has worked with other stakeholders to offer shares of state companies on credit terms as a way of empowering Malawians, buying on the secondary market is kashi kashi (pompo pompo)
- Nyasa Times introduced a column called ‘Off the Wall Of …’ We will be taking a Malawi Facebook Post of the Day and republish on Nyasa Times.
The way cookie crumbles
No where to complain popeza anachita kubera,why selling the institution that is making profits at some point?Osangochotsa osololawo bwanji,mwatikonda mwamva.
The chairman of Old Mutual board is Jimmy Lipunga who happens to be the CEO of PPC the arm of government selling MSB to Old Mutual owned FDH. See the conflict of interest here? Again Old Mutual has shares in Nedbank and National Bank through their shares in Press Corporation. This means Old Mutual has now an interest in five banks namely FDH, MSB, Nedbank, National Bank and now Indebank. Malawians this is illegal. Even the CEO of the commission is acting illegally because as chairman of Old Mutual board, he should not have presided over this sale. Malawians I… Read more »
enjoying this drama.
That statement by government is very misleading and is in no way correct. Just because you have shares in Old Mutual (OML) does not mean you are participating in the ‘ownership or management’ of its investments such as the one in FDH Bank. For example, there is no discussion of who should represent OML in the boards of companies that it has interests in at their Annual General Meeting. That government statement was aimed at appeasing Malawians but has failed miserably. Malawians will only participate when the 25% shares of MSB are listed on the Malawi Stock Exchange within or… Read more »
whatever the case,peter and Goodall are devils malawi will ever regret.Yes you heard me wright.
the logic is that Old Mutual uses pension money which is the pubic’s money for its investements. hence the public has an indirect investment in this transaction through Old Mutual. You need to look at Old Mutual as the entity that it is: a pension fund.
FDH sale …..
Pitala will pay K7bn the balance will be paid by Thom and Jerry
Nyasatimes mumakondera sunduzwayoyu. Nanga apa pali chimene wanena chanzeru choti mutitayise nthawi kuwerenga? mxiiieww!
Mr Nyirongo may be right on the shareholding but this changes now because the cash to buy MSB came from Old Mutual. I think then practically Old Mutual is now the majority shareholder in FDH Bank. Considering Nedbank too then this transaction is very illegal.