Press Corporation Limited (PCL) has said it is close to finalising the sale of its subsidiary, Malawi Telecommunications Limited (MTL), with completion expected by mid-August.
Speaking in an interview on the sidelines of PCL 41st annual general meeting (AGM) in Blantyre last week, PCL Board Chairperson Radson Mwadiwa said only a few formalities remain.
“We are almost there. I think just one or two Ts need to be crossed and Is dotted. I believe that by mid- August we should have completed the signings and everything else required,” Mwadiwa said.
Earlier this year, PCL announced it was in negotiations to potentially sell its entire 52.7 percent stake in MTL.
The company acquired the stake in 2005 following the privatization of the formerly state-owned telecommunications firm.
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The move comes after years of financial underperformance by MTL, which has struggled to remain competitive on the market. The company reported a profit after tax of K1.04 billion for the financial year ending December 31, 2024 — its first profit in over a decade.
Commenting on the development, Minority Shareholders Association of Listed Companies (Misalico) General Secretary, Frank Harawa, described the decision to sell MTL as “a very good idea.”
“We felt like we had held on to the company for too long,” Harawa said.
However, he also urged PCL to consider listing some of its subsidiaries on the Malawi Stock Exchange as an alternative to outright sales.
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“The best option should be listing these companies, for example, Ethanol Company (EthCo) and PressCane. Listing would mean the companies get new boards of directors and come under public scrutiny, also reducing the risk of corruption,” he said.
Commenting on the suggestion, equity market analyst Kondwani Makwakwa said that listing shares to the public could offer benefits, especially as Malawi stock market is growing with increasing investor interest. .
“More listings would enhance price discovery, deepen the market, and improve corporate visibility,” he said.
However, Makwakwa also cautioned that MTL’s recent history of underperformance could complicate a successful listing.
“Assuming MTL has faced performance challenges in recent years, it may struggle to meet listing requirements or attract strong investor demand. This could lead to undervaluation and harm PCL’s reputation and broader market sentiment. In such cases, a private placement might be a more practical short-term alternative for raising capital,” he said.
