AFRASIA Kingdom Holdings Limited (AKHL) says the disposal of its stake in First Discount House Financial Holdings of Malawi is yet to be finalised as the matter is now being handled by the courts.
Report by Victoria Mtomba
In an interview recently, AKHL chief executive officer Lynn Mukonoweshuro said AKHL had begun plans to dispose of the group’s shareholding in FDH.
“The process has unfortunately been delayed by differences on valuation of our stake,” Mukonoweshuro said in written responses.
“The matter has since become the subject of legal proceedings, which, therefore, prevents us from commenting further, suffice to say we are confident of a successful resolution to the disposal.” KFHL had a 38,15% stake in FDH and was the major shareholder.
The other shareholders in the arm included Thompson Frank Mpinganjira Trust with 37,85%, Old Mutual Life Assurance Company (Malawi) 19% and FDH ESOP with 5%.
FDH has four subsidiary companies, FDH Bank, First Discount House Limited, FDH Stock Brokers and FDH Money Bureau Limited.
KFHL last year said the central bank of Malawi was failing to raise $10 million that it required to dispose of its stake in the bank. AKHL recently secured $10 million from its Mauritia-based partner to provide lines of credit for on lending to customers.
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Mukonoweshuro told NewsDay last week that the company was now positioned to attract more capital that would come in handy in the company’s desire to meet the phased new capital requirements.
She said the capital injection of $9,5 million last year by their partner had enhanced the company’s balance sheet to underwrite new business.
AKHL stake in FDH was in line with the group’s strategy of constantly reviewing its regional expansion and with the macroeconomic challenges currently prevailing in Malawi.
AKHL’s other subsidiaries include MicroKing Savings And Credit Company (Private) Limited, Kingdom Asset Management and Kingdom Bank Africa Botswana.
