The Public Private Partnership Commission (PPPC) has announced that National Bank of Malawi (NBM) emerged the preferred bidder for the recapitalisation of the partially-State owned Indebank beating two other bidders including Mulli Holdings.
PPPC chief executive officer Jimmy Lipunga said at a news conference in Blantyre that the commission concluded the evaluation of “the best and final offers” from the three highest conforming bids, FMB and a consortium of Prudential Holdings Limited and NBM where “NBM came out as preferred bidder, a position approved by the commission in line with the PPP Act.”
“The evaluation team reconvened on 18 April to evaluate the Best and Final Offers (BAFOS). After a thorough assessment based on the original evaluation criteria, the bidders attained the following scores on their technical qualification proposal, Consortium of Prudential Holdings Limited and Rinascimento 78 percent, FMB 85 percent and National Bank 87 percent,” Lipunga said.
“After evaluating the technical proposals, the financial bids were assessed based on the evaluation criteria contained in the original bid procedures, National Bank K6.3 billion, registering a 100 percent score, FMB K6,057,000,000 (96 percent) and Prudential Holdings Limited K4.3 billion (69 percent).”
Lipunga said the commission will immediately go into negotiations to commence within the next two weeks.
“Once we finalise the negations, we will deploy a memorandum through the Ministry of Finance to approve the transaction, including investment agreement and formal handover,” he said.
The PPPC said it desires to see Indebank continue as a standalone bank rather than being absorbed into NBM, saying NBM is “committing to that.”
He said the equity investor will be required to inject additional capital to satisfy the Basel II supervisory provision as required by the Reserve Bank of Malawi (RBM).
“The investor [NBM] will need to demonstrate a commitment to address strategic and operational obligations, especially as they relate to information technology, marketing, product innovations, competitiveness and human resource retention training and development,” he said.
NBM is a listed company on the Malawi Stock Exchange (MSE) and in the financial year ended December 2014, the bank registered a profit-after-tax of K14.5 billion.
In Indebank, government has 41.38 percent, Admarc Investment Holdings holds 25.62 percent, Press Trust 30 percent and employees have 2.95 percent.Follow and Subscribe Nyasa TV :