ETI Divests Stake in Ecobank Mozambique to FDH Bank
Ecobank Transnational Incorporated (ETI) has announced a strategic agreement to divest its stake in Ecobank Mozambique S.A.(EMZ) to FDH Bank PLC, a well-established financial institution listed on the Malawi Stock Exchange.
In an official statement, the financial services group said the transaction represents a strategic change in ownership and operational management with no expected disruption to banking operations, assets or employees.
EMZ is a licensed commercial bank in Mozambique, supervised and regulated by the Central Bank of Mozambique 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.
Also, FDH Bank Plc is listed on the Malawi Stock Exchange, providing superior digital banking, personal and business banking, corporate and institutional banking, treasury and investment banking, global markets and trade finance.
ETI said the acquisition will be fully financed from FDH Bank Plc’s retained earnings. “This 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,” said Jeremy Awori, Chief Executive Officer, Ecobank Group.
“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.”
He added: “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 concluded.
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.
This transaction has been conducted on an arm’s length basis and does not involve any 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. #ETI Divests Stake in Ecobank Mozambique to FDH Bank#
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