Zimbabwe: Kingdom Takes Over Malawi Company

Harare

KINGDOM Financial Holdings Ltd has wrested control of Malawi firm First Discount House after it beefed up its shareholding to 40,16 percent.

Until then, Kingdom held 25,1 percent of FDH before acquiring part of Press Corporation Ltd's 30 percent stake, officials said this week.

PCL shares were bought for K90 million and shared between Kingdom and TF Mpinganjira Trust, which is now the second largest shareholder with 39,84 percent.

Old Mutual, at 20 percent, is the third largest shareholder.

It was not immediately clear if Kingdom's acquisition had received the blessings of the two countries' central banks.

Earlier reports from Malawi, however, indicated that PCL had sold its stake with the green light from the Malawi central bank.

Kingdom spokesperson Ms Farayi Mpofu yesterday confirmed the transaction.

In a previous interview, KFHL chief executive Mr Nigel Chanakira was quoted as saying his group was looking at consolidating its regional presence using every means possible.

He said then: "We are seriously looking at spreading local risk by expanding into the region."

FDC contributed $11,9 million to group income in the half-year to June 2006, as business continued to grow.

KFHL also runs a commercial bank in Botswana -- Kingdom Africa Bank Ltd -- which suffered teething problems before rebounding after a capital injection of US$1 million earlier last year.

The unit struggled between 2005 and 2006 after a serious run on deposits before being placed under curatorship by the Bank of Botswana.

Kingdom has this year remained strong, releasing forecast-beating full year to December 2006 results in which net profit surged to $17,8 billion from $188 million in 2005.