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.