
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.
The contents of the post above were obtained from third parties, which We, AfricanFinancials, believe to be reliable. However, We do not guarantee their accuracy and the above information may be in condensed form. The reader is encouraged to refer to the original source of the information, which, in most cases, is in PDF format and on the originating company's letterhead. While We endeavour to replicate the original content accurately, We cannot guarantee the absence of errors in the above article and We disclaim any liability regarding reliance on information provided in this article.
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