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.