Table of Contents
Key Points
- Letshego Holdings Namibia will transfer 25 million shares to a trust for employees, pending shareholder approval, at no cost to beneficiaries.
- The share plan complies with the Banking Institutions Act of 2023, requiring 25 percent Namibian equity ownership in financial institutions.
- Letshego Holdings will receive 80% of distributions from the trust until notional funding balances are cleared, then proceeds go to employees.
Letshego Holdings Namibia (LHN), a subsidiary of Letshego Holdings, a Botswana-based transnational financial services group partly owned by Malawian banking magnate Hitesh Anadkat, is set to award shares to its employees at no cost through a newly introduced employee share ownership plan.
This strategic move aims to align employee interests with shareholders and comply with the Banking Institutions Act of 2023, which mandates a 25 percent local Namibian equity ownership.
The plan, pending shareholder approval, will see LHN transfer 25 million shares from Letshego Holdings to a trust established for this purpose. Beneficiaries will receive the shares free of charge, as disclosed in a company statement.
Letshego Holdings to receive 80-percent distributions
The transaction, including a nominal cash payment of N$0.01 ($0.00056) per share, amounts to N$250,000 ($14,106). The remaining funds will be managed through notional funding, which simplifies the process and minimizes costs compared to traditional funding methods.
“The trust deed has been approved by the Namibian Stock Exchange and is awaiting final approval from the company’s shareholders,” Letshego Holdings stated. “The notional funding method has been adopted to streamline administration and reduce ongoing costs, aligning with regional best practices.”
Under the proposed plan, the trust will initially allocate 80 percent of any distributions received from the shares back to Letshego Holdings until the notional funding balance is depleted. Subsequent distributions will be directed entirely to the beneficiaries.
Letshego Holdings expands pan-African reach
Letshego Holdings is a Gaborone-based transnational financial services group with active pan-African operations in ten Sub-Saharan African markets, including Mozambique, Nigeria, Namibia, Kenya, and Tanzania.
Hitesh Anadkat, a leading Malawian banking magnate and top shareholder with a 2.9 percent stake in Letshego, is a key figure behind this initiative. Anadkat’s investment portfolio also includes stakes in Telekom Networks Malawi, and he is the founder of FMB Capital Holdings, a leading bank in Malawi.
The final decision on the employee share ownership plan will be determined by shareholder votes in the coming weeks. If approved, this plan is expected to enhance employee engagement and support the company’s compliance with local equity regulations.
