Ecobank Transnational Incorporated (ETI) has announced an agreement to divest its stake in Ecobank Mozambique S.A.(EMZ) to FDH Bank Plc.
The Company Secretary, Madibinet Cisse, in a statement on the Nigerian Exchange Limited (NGX), stated that the transaction represents a strategic change in ownership and operational management with no expected disruption to banking operations, assets or employees.
According to him, 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 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,” the statement added.
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Speaking on the development, the Chief Executive Officer, Ecobank Group, Jeremy Awori, in a statement, said, “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.
“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.”
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