Mpatsa Holdings had acquired 49% stake in Mybucks Banking Corporation Malawi, as confirmed by Mybucks SA. The acquisition was complete and awaited approval from the Reserve Bank of Malawi which has disapproved the acquisition.
According to a statement dated 2nd November by Mpatsa Holdings, the central bank has based its disapproval on Mpatsa Holdings’ poor liquidity reserves. The statement reads in part “(The Reserve Bank Governor) has not approved the acquisition on the grounds that Mpatsa’s assets are in the form of fixed assets which may not be liquidated quickly should there be need in the future to provide additional support to the bank”
The statement explains that Mpatsa Holdings’ authorities argued with the central bank governor that if such a scenario arose, assets would be liquidated, specifically to support the bank, but the governor was not impressed with that resolve, nor other means proposed by Mpatsa Holdings.
“..it is therefore with deep regret that we are informing the general public that our wish to participate in this important sector of our economy has been dealt a death blow…” says the statement. The acquisition offer had 30th October as a deadline.