BIHL Buys Stake In Malawi Firm

Diversified financial house, BIHL Group, says it plans to buy a 25.1% stake in the Malawian Insurance and asset management company, Nico Holdings, for P145 million.

In a notification to the Botswana Stock Exchange, BIHL said the opportunity presented to buy 261,760,272 shares representing 25.1% issued share capital in Nico is attractive because Nico’s business is well diversified into a number of financial services spanning over five countries in Southern Africa.

“It further offers BIHL an opportunity to expand into Southern Africa at a market related price with attractive growth opportunities and enhanced return on group equity value.

“The market value of Nico is MK31.3 billion (which is approximately P600 million). This is based on a BWP/MK exchange rate of BWP1 = MK54. The purchase price is to be discharged by way of cash settlement through an authorised broker of the Malawian Stock Exchange,” said BIHL.


Nico is listed on the Malawian Stock Exchange and operates in five countries being Malawi, Tanzania, Uganda, Zambia and Mozambique.

BIHL will buy the stake from Sanlam Emerging Markets (Proprietary) Limited (SEM), which is a 100% subsidiary of JSE listed Sanlam Limited.

SEM also owns 58.3% of the share capital in BIHL.

“The transaction involves parties that are related through the beneficial material shareholding that SEM has in both BIHL and Nico. Since this is a related party transaction, it is subject to the shareholders in BIHL approving the acquisition at a duly convened extraordinary general meeting and also may require other regulatory approvals including the approvals required in terms of the Malawian Stock Exchange pertaining to the transaction,” said BIHL.

 In another transaction, BIHL says is it also planning to indirectly acquire a 50%t into Botswana Insurance Company (BIC), the oldest short-term insurance provider in Botswana.

 BIHL said it was considering a series of proposed transactions, which will result in it acquiring up to 50% of the issued share capital of Teledimo Proprietary Limited, which Teledimo directly owns 50% of the shares in BIC.

The first transaction in the series involves BIHL buying a 33.33% stake on Teledimo for P82.5 million.

Established in 1975, BIHL has interests in life insurance, asset management and legal insurance cover.

BIHL, whose revenues stood at P2.1 billion in the six months to June 2015, also has investments in associated companies BSE listed firms, Letshego Holdings Limited and Funeral Services Group Limited.

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