DGAP-News: MyBucks S.A.: MBC Malawi acquires 100% of Nedbank Malawi

DGAP-News: MyBucks S.A. / Key word(s): Acquisition
MyBucks S.A.: MBC Malawi acquires 100% of Nedbank Malawi
09.12.2019 / 14:16
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MyBucks Banking Corporation Limited (Malawi) acquires 100% of Nedbank Malawi

- Strategic move boosts market share and unlocks growth potential in corporate client base in Malawi


Luxembourg, December 9th, 2019 - Frankfurt-listed African banking group MyBucks S.A (MyBucks) today announced, that its subsidiary MyBucks Banking Corporation Limited (MyBucks Malawi or MBC Malawi), secured approval from the Reserve Bank of Malawi to acquire 100% of Nedbank Malawi Limited on the 2nd December 2019. MyBucks Malawi and Nedbank SA are now working on meeting certain suspensive conditions to facilitate the completion of the transaction. Completion is expected in the first quarter of 2020.

MyBucks' presence in Malawi started with microlending business, GetBucks Malawi, in 2013 and was subsequently expanded through the acquisition of 50% of New Finance Bank Malawi Limited ("NFB") in 2017. Both operations were consolidated into MyBucks Malawi through a parallel buy-out of the other shareholders in 2019.

MyBucks notably turned around MyBucks Malawi from a loss-making position to a profit and opened the world's first banking branch in a refugee camp in 2018. It also listed the first ever corporate bond on the Malawi Stock Exchange in the same year. Through the acquisition of Nedbank Malawi, MyBucks Malawi aims to boost its presence and growth trajectory in the country.

Nedbank Malawi was incorporated in 1976 under the name "Fincom". Nedbank Malawi currently has 11 branches in various cities in Malawi with approximately 42,000 customers, which is serviced through three divisions: Retail and Small & medium enterprises (SME), Wholesale and Treasury.

MyBucks intends to consolidate the operations of MyBucks Malawi and Nedbank Malawi in a manner that yields the greatest value to all stakeholders. Focus will be on increasing revenue by cross selling products across the two sets of customer databases. The merged bank will have significantly enhanced scale with a 5.8% deposit market share, up from MyBucks Malawi's' current 3.2% (as at June 2019). The merger of the operations will be done in a manner that yields the greatest value to all stakeholders.

MyBucks CEO, Tim Nuy, said the transaction is a strategic move to unlock value in the Malawian market.

"The deal allows the combined business to achieve scale. The increased scale and lending capacity will allow the business to tap into the corporate client base and better service as well as retain existing SME clients. This fundamentally changes the growth trajectory of the business," Nuy said.

Nuy added that the transaction unlocks exciting growth opportunities that will benefit both the customer base and the staff as well as markedly reducing the cost of funding. "Ultimately, this strategic move allows us to unlock more value for all stakeholders as the group strives to provide a fuller stack of banking services in the markets where we operate."

The CEO of MyBucks Malawi, Zandile Shaba added that "This acquisition is consistent with our strategic objectives and will place us in an optimal position to increase profitability, improve customer experience and enhance the impact that we have on our society"

MyBucks Audited Financial Statements

MyBucks further advises that it expects to release its Audited Financial Statements for the period ending 30 June 2019 by the end of this week. MyBucks expects no material differences to the preliminary figures published in November 2019.

About MyBucks

MyBucks is a company domiciled in Luxembourg that delivers financial services through technology. MyBucks operates in six African countries through its brands GetBucks, GetSure and MBC. The Group offers credit, banking solutions and insurance products to customers. The MyBucks product offering enables customers to manage their financial affairs easily and conveniently. Discover more at http://www.mybucks.com


Contact:
Investor related matters: investors@mybucks.com
Public relations: pr@mybucks.com


Important Notice:

This publication does not constitute an offer of securities for sale or a solicitation of an offer to purchase or subscribe securities of MyBucks S.A. in the United States, Germany or any other jurisdiction.

This publication is not intended, either directly or indirectly, for dissemination or distribution to the USA or within the USA (including its territories and possessions, a U.S. federal state and the District of Columbia) and may not be distributed or forwarded to 'U.S. persons' (as defined in Regulation S of the U.S. Securities Act of 1933 in the applicable version ('Securities Act')) or to publications which are widely available in the USA. This publication does not constitute an offer - or a request to issue an offer - to buy or acquire securities in the USA, nor is it part of such an offer or request. The securities are not and will not be registered in accordance with the provisions of the Securities Act and may only be sold or offered for purchase in the USA with prior registration in accordance with the provisions of the Securities Act in the version currently applicable or, in the absence of prior registration, if an exemption is granted. MyBucks S.A. does not intend to make a public share offer in the USA.

Subject to certain exceptions under applicable securities laws, the securities referred to in this publication may not be offered or sold in Canada, Australia or Japan or to, or for the account or benefit of, any national, resident or citizen of Canada, Australia or Japan.

No action has been taken that would permit an offering of securities or their subscription or the distribution of this publication in any jurisdiction where such offering, subscription or distribution is prohibited. Persons who obtain this publication are required to inform themselves about potential restrictions and to observe any such restrictions.

This publication contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of MyBucks S.A. and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those described herein due to factors affecting MyBucks S.A. such as, among other things, changes in the general economic and competitive environment, capital market risks, currency exchange rate fluctuations and competition from other companies, and changes in international and national laws and regulations, in particular with respect to tax laws and regulations. MyBucks S.A. does not assume any obligation to update any forward-looking statements.

The information contained in this publication is for background purposes only and does not purport to be full or complete. No reliance may be placed, for any purpose, on the information contained in this publication or its accuracy or completeness. The information in this publication is subject to change.

Neither the bank nor any of their directors, officers, employees, advisers or agents accept any responsibility or liability whatsoever for or make any representation or warranty, express or implied, as to the truth, accuracy or completeness of the information in this publication (or whether any information has been omitted from the publication) or, with limited exception, other information relating to MyBucks S.A., its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and independent from how it was transmitted or made available, or for any loss in any way arising from any use of this publication or its contents or otherwise arising in connection therewith.

 


09.12.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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Language: English Company: MyBucks S.A. 9 rue du Laboratoire L-1911 Luxembourg Luxemburg Phone: +352 2088 2123 Fax: +27 86 537 2010 E-mail: info@mybucks.com Internet: www.mybucks.com ISIN: LU1404975507 WKN: A2AJLT Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Munich, Stuttgart, Tradegate Exchange EQS News ID: 931335
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931335  09.12.2019