By Chikondi Chiyembekeza

Copyright mwnation

FDH Bank plc says it has successfully completed the acquisition of the entire shareholding of Ecobank Transnational Incorporated (ETI) in Ecobank Mozambique SA.

In a statement yesterday, FDH Bank plc company secretary Julio Kanyongolo said following the completion, the bank has assumed ownership of 98.87 percent of Ecobank Mozambique SA while the remaining stake of 1.13 percent will remain with Fundo Para O Fomento De Habitação, a housing development fund in Mozambique.

Reads the statement in part: “A transition process is underway, including a name change and rebranding to ensure continuity and stability for customers, staff and other stakeholders.

“This acquisition represents a significant milestone in FDH Bank plc’s regional growth strategy and reaffirms the bank’s strong commitment to investing in southern Africa.”

He said the move is expected to deliver strategic benefits, including market expansion, revenue diversification, operational synergies and long-term value creation for stakeholders.

In an earlier statement, ETI company secretary Madibinet Cisse said the decision aligns with their commitment to Ecobank’s growth, transformation and returns strategy.

During the bank’s Investors’ Forum earlier this year, FDH Bank plc managing director Noel Mkulichi said they conducted market surveys in Zambia and Mozambique to assess the feasibility of penetrating the regional markets as part of its long-term expansion strategy.

Home-grown FDH Bank plc, established on July 18 2008 as a subsidiary of FDH Financial Holdings Limited, is now among the three MSE-listed banks that have subsidiaries across Malawi’s borders.

FDH Bank plc, whose share price traded at K637.94 at the close of business yesterday on MSE, listed on the 16-counter market in August 2020.