MALAWI – Frankfurt-listed Fintech MyBucks South Africa, the parent company of MyBucks Malawi, has agreed to reduce its shareholding in the bank to 51 percent, with 49 percent taken up by Mpatsa Holdings, a local investment company.
In a statement, MyBucks S.A. says this is part of the second phase of debt restructuring of the group. This means that MyBucks will retain a 25 percent stake in MyBucks Banking Corporation Mozambique. MyBucks S.A. expects the transaction to have an “accretive effect on its equity”.
“These transactions remain subject to customary regulatory approvals, most importantly central bank approval in Malawi, Mozambique and Zambia,” Read part of the statement.
The transaction is expected to reduce gross external debt to US$28 million (about K21 billion), against which the company still holds financial assets of US$11 million (about K8.5 billion).
To further align the cost structures of the group to focus on operational efficiency, the group has also simplified its governance structures.
Through its investment arm, Mpatsa Holdings Limited, owned by Jimmy Koreia Mpatsa, has interests in several sectors of the country’s economy, namely agriculture, mining, hospitality, real estate, pharmaceuticals, distribution and marketing.
MyBucks S.A. says it has also reduced its consolidated indebtedness by US$29.9 million (about K23 billion) through a disposal of GetBucks Limited Mauritius (holding its Botswana operation), and shares in its operations in Mozambique and Zambia.
MyBucks SA is a Luxembourg-based company primarily engaged in the consumer lending sector. The Company is a financial technology (FinTech) entity, which focuses on distributing financial products through online platforms. It aims at low- and middle-income consumer segment, mainly in emerging markets.
It operates in a number of European and South African countries, such as Spain, Poland, Zimbabwe, Kenya, Botswana and Uganda. It operates through New Finance Bank Malawi Ltd, a Lilongwe-based commercial bank.
Its products and services portfolio comprises: GetBucks, which offers short-term single payment loans, installment loans and other credit-related services; GetSure, which provides insurance cover, including life, funeral and health insurance, among others, and GetBanked, which offers saving accounts, mobile payment transactions, credit card transactions, as well as access to banking, credit and insurance portfolio in an online tool, among others.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE