- The struggling Alliance Holdings Limited, Malawi has announced plans to offload its stake.
- Alliance Holdings Limited group chief executive officer Christian Majavina admitted that the company faced financial challenges leading to the decision to bring in new investors into the holding company.
The struggling Alliance Holdings Limited, Malawi has announced plans to offload its stake. Alliance Holdings Limited group chief executive officer Christian Majavina admitted that the company faced financial challenges leading to the decision to bring in new investors into the holding company.
The proposed move upon getting the approval of the Reserve Bank of Malawi (RBM) is expected to bail out the company from its financial struggle. It is reported that the prospective investors from South Africa are keen to takeover Alliance Holdings Limited and its subsidiaries subject to completion of all the necessary regulatory processes and approvals
The portfolio manager’s licence of Alliance Capital Limited was suspended in April this year for contravening financial services laws. The asset maturity mismatches affected liquidity of the firm. The Alliance Capital Limited licence was suspended according to the central bank, for a period of 12 months from April 2 2021 to safeguard the interests of investors and the public. The central bank forbid the company from allowing or accepting new business, and focus on repaying liabilities to investors and other creditors during the suspension period.
Alliance Holdings Limited entered the Malawi market in 2018. Founded by the shareholders of Alliance Capital Limited, it has four subsidiaries, namely Alliance Capital Limited, Smile Life Insurance Company, Sycamore Consult Limited and Alliance Stockbrokers.
