National Bank of Malawi plc (NBM), the leading bank in the country, has completed the acquisition of a 51% controlling stake in Akiba Commercial Bank plc (ACB) of Tanzania for a consideration of USD 7.31 million through a share subscription.
NMB explains in its cautionary statement to investors that the acquisition is in line with the banks’ current strategic plan which has regional expansion as one of its key thrusts.
“The acquisition is expected to bring about growth in business for both NBM and ACB as it upscales the business of ACB to the standards of NBM,” the statement reads.
NBM is listed on the Malawi Stock Exchange with a market capitalization of MWK 304 billion. The investment in ACB is approximately 2% of the NBMs current market capitalization. However, negotiations are ongoing for an additional stake in ACB.
ACB 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.