Amalgamation and Merger of The Leasing and Finance Company of Malawi Limited (“LFC”) with First Merchant Bank Plc (“FMB”) (the “Scheme of Arrangement”)

/, Corporate News/Amalgamation and Merger of The Leasing and Finance Company of Malawi Limited (“LFC”) with First Merchant Bank Plc (“FMB”) (the “Scheme of Arrangement”)

Amalgamation and Merger of The Leasing and Finance Company of Malawi Limited (“LFC”) with First Merchant Bank Plc (“FMB”) (the “Scheme of Arrangement”)

On 20 December 2017, the High Court of Malawi approved the Scheme of Arrangement whereby FMB will acquire, assume, amalgamate and merge with its own undertaking and all the property, assets and rights, real and personal, liabilities (actual and contingent) and obligations of every description of LFC. The effective date of the Scheme of Arrangement is 31 December 2017.

Current clients of LFC will continue to be serviced with the same suite of financial products from the existing LFC premises in Blantyre and Lilongwe.

The terms of existing deposits will not be varied as a result of the merger but terms of all new deposits including re-investment of maturing deposits will be subject to negotiation in the normal manner by reference to interest rates prevailing at that time.

Borrowers with variable rate loans or finance leases will see a reduction in interest rates applicable on their facilities in line with the reduction in the FMB base rate effective 2 January 2018. In all other regards, terms and conditions of facilities including repayment period and security will not be varied as a result of the merger.

All pending legal proceedings by and against LFC will continue by and against FMB and in the name of FMB.

Oswald Mtokale
Company Secretary
First Merchant Bank Plc

2018-02-22T16:21:30+00:00 February 19th, 2018|Corporate Announcements, Corporate News|