Following a strategic review by Nedbank Group [JSE:NED], the financial services provider will dispose of its Malawi operations.
The financial institution made the announcement in a shareholder notice issued on Monday. The Malawi subsidiary of African banking group MyBucks will acquire Nedbank Malawi, according to the notice.
"Nedbank Group and Nedgroup Investments Africa have agreed to dispose of, and MyBucks Banking Corporation Limited has agreed to acquire, in one composite, indivisible transaction, 100% of the issued shares of Nedbank Malawi and the cession and delegation of a term loan from Nedbank Limited to Nedbank Malawi," the notice read.
"The disposal follows a strategic review by Nedbank Group. As at 30 June 2019, Nedbank Malawi contributed less than 0.1% to Nedbank Group's headline earnings and total assets and its market share in Malawi was approximately 1%," the notice read.
Nedbank said it is still committed to growing operations in the Southern African Development Community, as well as exploring opportunities in East Africa and to strengthen its alliance with Ecobank Transnational Incorporated in Central and West Africa.
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So far, the Reserve Bank of Malawi has approved the transaction, which is still subject to approval of the competition authority, namely Common Market of East and Southern Africa.
Nedbank Group shares were trading 0.23% down at 16.15 on Tuesday, changing hands at R215.60.