The Reserve Bank of Malawi (RBM) has rejected Mpatsa Holdings’ acquisition of 49 percent shares in Mybucks Banking Corporation.
Mpatsa Holdings acquired the shares in June and all processes were completed but the deal was subject to approval by RBM.
According to a statement by Mpatsa Holdings today, the central bank has rejected the acquisition.
The Reserve Bank Governor who doubles as Registrar of Financial Institutions, has not approved the acquisition on the grounds that “Mpatsa’s assets are in the form of fixed assets which may not be liquidated quickly should there be need in the future to provide additional support to the bank.”
According to Mpatsa Holdings, this is not a criterion for one to invest financial institution and has never been applied to any of the existing banks’ shareholders.
“We further pointed out that should such a situation arise, there are several option available to us such as: Dilution of shareholding, Liquidation of assets, obtain financing etc. but all our pleas fell on deaf ears.
“Mybucks’ offer was valid up to 30th October, 2020 and it is therefore with deep regret that we are informing the general public that our wish to participate in this important sector has been dealt a death blow by forces that we have no capacity to fight,” reads part of the statement.
The company then criticized RBM for its handling of the issue saying it contradicts the Tonse Alliance policies of job creation and local empowerment.
According to Mpatsa Holdings, relevant authorities should inculcate the new administration’s agenda of creating an enabling environment for local participation and not just paying lip service.
The company said: “It is our sincere hope that our regulatory authorities will be facilitators, and not stumbling blocks, to the noble cause of local participation in our economy.”
