Processes to have MyBucks S.A dispose of its 100 percent shares in Mybucks Banking Corporation Malawi to a yet-to-be-known investor are underway, a statement from the bank has said.
This follows a court bankruptcy declaration on the parent company, MyBucks S.A, in December 2021.
“MyBucks S.A was indeed placed into bankruptcy in December 2021 and is under management of a receiver. Prior to the bankruptcy order MyBucks S.A was already in the process of disposing of its 100 percent shareholding in MyBucks Malawi to a strategic investor,” the statement reads.
The Digital Economy of South Africa reported in February 2022 that after an analysis the firm’s proprietor, Stock Exchange-listed Afristrat, realised that the future prospects of MyBucks S.A as an investment vehicle, was unsustainable and would not provide any realistic turnaround value for them in the future”.
MyBucks Malawi has, however, allayed fears among clients and customers, saying their money remains safe as the shareholding transfer processes take place.
The sale, according to the bank, is happening with the support of the Reserve Bank of Malawi (RBM) after reaching consensus with stakeholders.
“In the meantime, the bank continues to operate as normal, in line with the Banking Act and local operations have not been impacted by the development,” the statement adds.
Mybucks Marketing and Public Relations Manager Linda Simwaka could not disclose who the ‘strategic investor’ is.
And RBM spokesperson Ralph Tseka did not pick our calls on several trials.
Finance analyst Cosmas Chigwe has, since, accused the central bank and MyBucks Bank authorities of hiding crucial information from clients, a thing he says can lead to investors and clients’ speculation.
He opines that the bank’s statement is reactionary in nature, adding that the announcement was supposed to be made at the commencement of the sale process.
Chigwe has also warned that Malawi’s economy is not strong to absorb failure of banks.
During the recent meeting, Parliament passed the Deposit Insurance Bill of 2021 which aims at protecting people who deposit money with microfinance institutions or mainstream banks from suffering losses when the institutions fail in the course of their operations.
Mybucks Malawi was licenced on May 13 2014 and commenced its operations on July 24 2015.
In April 2020, Mybucks Malawi completed its integration process with Nedbank Malawi following the former’s acquisition of 100 percent stakes in December 2019.