5% stake for MSB employees

FDH Financial Holdings Limited has disclosed that in addition to the 75 percent stake it has bought from government in Malawi Savings Bank (MSB), it has also acquired an additional five percent which will later be sold to MSB employees.

This means that the government has sold a total of 80 percent shares in MSB and now remains with only 20 percent shareholding.

“We have bought and paid for the five percent shares on behalf of the MSB employees,” FDH Holdings chief executive officer, Thom Mpinganjira, told Times TV over the weekend.

He said an employee shareholding scheme will soon be set up and that MSB employees with be provided with a facility to enable them acquire shares in the bank through the scheme.

In an interview yesterday, Mpinganjira said FDH has paid Malawi government K300 million for the five percent stake to be sold to MSB employees.

He said the employees will be appraised on the matter and that the shares will be allocated to all the almost 600 employees of the bank who will be expected to pay for their allocation for a period of five years, starting from the month-end of August this year.

“Should there be others who would opt out, their shares will be re-allocated to the remaining ones,” said Mpinganjira.

FDH Holdings has bought MSB at K9.5 billion, of which K5.1 billion and K300 million will be paid to government for the 75 and five percent FDH and MSB employees’ stakes respectively while K3.2 billion will be used to recapitalise the bank and K900 million for the acquisition of a new state-of-the-art computer system for the bank.

FDH Holdings is owned by Mpinganjira’s M-Development Limited with 55 percent shares, Old Mutual with 40 percent and FDH employees with five percent.

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