Trust cuts Malawi shareholding to 20pc

DIVERSIFIED financial, investment and horticultural concern, Trust Holdings Limited, has reduced its shareholding in its Malawi operations to 20 percent.

THL operates Trust Securities and Trust Finance Limited in Malawi.

The two subsidiaries are controlled by Unit Administration Limited, THL’s biggest creditor, which holds 45 percent of Trust Securities and 60 percent of Trust Finance Limited.

Announcing its financial results for the half year ended June 30 2009, Trust said operations in Malawi proved difficult to sustain following an operating loss of US$131 000.

"Resulting mainly from low activity on the Malawi Stock Exchange, the group has reduced its shareholding to 20 percent with effect from August 2009," Trust said.

Trust was forced to shed of its shareholding after it failed to raise funds to recapitalise the two subsidiaries.

The group said the board is positioned to benefit from the economic recovery initiatives being pursued and believes that attractive opportunities exist for expansion and acquisition in properties, financial services and export sectors.

In the first half of the year, THL indicated that the strategic focus for the year was to ensure capital and profit growth for Trust Export Agriculture.

The group said a major acquisition was likely to be concluded as well as unlocking value under the real estate portfolio.

After the sell of Trustfin to TN financial Holdings in 2007, Trust is transforming from a banking corporation to a diversified horticultural and investment concern.

Trust also reported that negotiations with relevant parties towards an amicable solution to the Trust Bank case are progressing.

Trust Holdings is said to have opened negotiations with the Reserve Bank of Zimbabwe to bring back Trust Bank.

RBZ took over the assets of Trust Bank, Royal Bank and Barbican after they were declared insolvent.

The bank was subsequently placed under the management of a curator.

Its assets were later sold to the Zimbabwe Allied Banking Group.

The group was de-listed on the Zimbabwe Stock Exchange when its flagship was placed under curatorship.

THL appealed in 2007 to the Administrative Court against a RBZ ruling that dismissed the financial group’s appeal against selling its shares to the ZABG.

The appeal is still standing.

A regrouped THL, however bounced back on the bourse last year without the bank.

The group currently runs insurance broking companies, stock broking firms in Malawi and has interests in horticulture.