South African banking group Barclays Africa and France’s Société Générale are two of the main players interested in buying a majority stake in the Moza bank, which is currently subject to Bank of Mozambique intervention, the Africa Monitor Intelligence (AMI) newsletter reported.
The Mozambican central bank intervened in Moza in September 2016 due to the continued deterioration of the bank’s prudential situation in order to “protect the interests of depositors and other creditors, as well as safeguarding the normal operating conditions of the Mozambican banking system.”
Moza (formerly known as Moza Banco), which started operations in 2008, is controlled 51% by Moçambique Capitais and the remaining 49% held by Portugal’s Novo Banco, a bank that inherited the healthy assets of bankrupt bank Banco Espírito Santo.
Shareholders met at a general meeting on 23 January 2017, decided to proceed with a capital increase and set a deadline of 23 March 2017 for to exercise preferential rights, but at the end of that period they did not comply with the agreement.
In a statement issued on the same day, the Bank of Mozambique added that the provisional board of directors, in coordination with the evaluation committee, would continue with the Moza capitalisation process.
The branches of the two banking groups – Barclays Bank Moçambique and Société Générale Moçambique – are the main candidates to buy the majority of Moza, increasing their market share through the mergers and acquisitions process.
Both banks have expressed their intention to grow in the Mozambican market, and therefore this acquisition, if successful, will increase Barclays Bank Moçambique’s market share from 6% to 13% and Société Générale Moçambique from the 2% to 8%. (macauhub)