Ecobank Transnational Incorporated (ETI) has announced that it will be divesting its stake in Ecobank Mozambique S.A.(EMZ) to FDH Bank PLC, a Malawian bank, this is as South African lender, Nedbank Group Limited plans to sell its stake in the pan African bank.
Nedbank’s Chief Executive, Jason Quinn had announced that the bank plans to sell its 21.2 per cent stake in ETI to focus on businesses in the southern and East African regions. Quinn said the company would “prefer to own or control all of the operations that we’re involved in” to execute strategy more deliberately.
Announcing the divestment on the Nigerian Exchange Limited on Tuesday, ETI said the transaction represents a strategic change in ownership and operational management with no expected disruption to banking operations, assets or employees.
According to the bank, the transaction has received all the necessary regulatory approvals. It is subject to customary conditions precedent and is expected to be completed within the 2025 financial year. Upon completion, FDH Bank PLC will assume effective control of Ecobank Mozambique SA.
Commenting on the divestment, Chief Executive of the Ecobank Group, Jeremy Awori noted that the “strategic decision aligns with our commitment to Ecobank’s Growth, Transformation, and Returns strategy, ensuring we remain a competitive and meaningful player across the markets in which we operate
“As a Pan-African financial institution, we continuously assess our operations to drive sustainable growth while maintaining our core mission of driving Africa’s financial integration and economic growth.
“The transfer of our Mozambique stake to FDH Bank PLC was given deep consideration to ensure least disruption and the best outcome for employees, customers and operations. We are exploring strategic partnerships with FDH Bank to maintain Mozambique’s access to our pan-African digital ecosystem for seamless cross-border payments.
“While our direct presence in Mozambique is changing, our unwavering commitment to driving pan-African financial integration and economic growth across the continent remains stronger than ever”, Awori stated.
EMZ is a licensed commercial bank in Mozambique, supervised and regulated by the Central Bank of Mozambique. EMZ has 4 branches located in the biggest cities of Mozambique. The bank has been operating in Mozambique since 2000, when it was incorporated as Novo Banco SARL, before changing its name in 2014 to Ecobank Mozambique SA, following an acquisition by ETI.
FDH Bank Plc is listed on the Malawi Stock Exchange. The Bank provides superior digital banking, personal and business banking, corporate and institutional banking, treasury and investment banking, global markets and trade finance, as well as corporate advisory services. The acquisition will be fully financed from FDH Bank Plc’s retained earnings.
This transaction has been conducted on an arm’s length basis and involves no related parties. Both FDH Bank Plc and ETI remain committed to keeping stakeholders informed of any material developments in line with their respective stock exchange listing requirements.
