Key Factors
- FDH Financial institution acquires 98.8% of Ecobank Mozambique for $19.2 million, reinforcing its regional development technique and diversifying earnings streams.
- The remaining 1.13 p.c stake is held by Mozambique’s state-backed Fundo Para o Fomento de Habitação (FFH).
- With a $2.74 billion valuation, FDH ranks as Malawi’s second most respected inventory, trailing solely FMB Capital Holdings Plc.
FDH Financial institution, an entirely owned subsidiary of FDH Monetary Holdings Restricted based by Malawian billionaire Thom Mpinganjira, has entered right into a definitive settlement to accumulate a majority 98.8 p.c stake in Ecobank Mozambique SA from Ecobank Transnational Inc. for $19.2 million, marking its first cross-border deal.
Growth into Southern Africa
FDH’s 98.8 p.c acquisition of Ecobank Mozambique, strengthens its regional footprint and diversifies income streams, advancing a broader Southern Africa development technique whereas preserving capital for long-term stability. The remaining 1.13 p.c stake is held by Mozambique’s state-backed housing growth fund, Fundo Para o Fomento de Habitação (FFH).
Maputo-based Ecobank Mozambique, previously a unit of Togo’s Ecobank Transnational, operates as a full-service business financial institution with retail, company, and funding banking choices. It serves people, SMEs, and enormous corporates by means of nationwide branches and digital channels.
FDH balances development and dividend minimize
FDH firm secretary Juliano Kanyongolo mentioned the deal will unlock market growth, income diversification, operational synergies, and long-term worth creation for shareholders. Malawi Inventory Change CEO John Kamanga hailed the acquisition as a milestone for the nation’s monetary sector.
Alongside the acquisition, the Malawian lender declared a primary interim dividend of $4.02 million, a 46 p.c drop from 2024, because it strikes to preserve capital for regional development. The payout equates to MWK1.02 ($0.00059) per share in contrast with MWK1.89 ($0.0011) a 12 months earlier.
FDH shares commerce at MWK689.92, giving the financial institution a market capitalization of MWK4.76 trillion ($2.74 billion), making it the second most respected inventory on the Malawi Inventory Change after Customary Financial institution Malawi Restricted.
New section for FDH
Based in 2008, FDH Financial institution has develop into one among Malawi’s largest lenders, providing loans, financial savings, investments, and transaction companies. Mpinganjira, who resigned as CEO of the holding firm in 2020 after a bribery case tied to Malawi’s 2019 elections, was succeeded by his son William.
The Ecobank Mozambique deal alerts FDH’s push to place itself as a regional participant and displays the growing outward orientation of Malawi’s monetary sector.
