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Tanzania: NMB Top Dse Mover After Share Transfer

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THE Dar es Salaam Stock Exchange (DSE) has recorded one of the highest equities market turnover surge, thanks to NMB Bank share transfer from Rabobank to Arise.

The market turnover surged to 420.91bn/- after transferring 174.5 million NMB Bank shares to Arise, Rabobank investment arm. The amount was the highest since the Covid-19 pandemic broke out over a year ago.

Thus, according to Zan Securities, made NMB Bank a top market mover with 99.91 per cent of total turnover.

“The equities market echoed our last week sentiment where we expected an increase in prices, volume and turnover,” Zan Securities said in its Weekly Market Wrap-ups report. “We expect the market to continue with positive performance owing to the performance of financials and industrials.”

NMB Bank closed at 2,340/- per share last Friday after trading flat, almost throughout the year.

The Capital Market and Securities Authority (CMSA) on Monday this week approved the transfer of NMB Bank shares owned by Rabobank to Arise B.V (‘Arise’).

Arise B.V, an investment platform, is a leading African investment company (holding company) which is backed by reputable cornerstone investors.

NMB Bank Plc Chief Executive Officer Ruth Zaipuna said in Dar es Salaam yesterday that the successful completion of the share transfer was a testament of investors’ confidence in the institution and the country at large.

“Collaborative partnership between Arise and NMB is envisaged to deliver substantial operational, commercial, organisational and financial benefits with long-term market returns that go beyond stakeholders’ expectations,” she said.

The approval of share transfer will see 174,500,000 shares, which constitute a 34.9 per cent stake transferred to Arise.

The Investment Consortium was established in 2016 by Norway’s state-owned private equity company, Norfund, Dutch development bank FMO and Dutch multinational financial services company, Rabobank.

This signifies that Rabobank is still part of NMB Bank owners through Arise.

It aims at growing sustainably locally owned financial institutions and markets with strong potential, with NMB and Tanzania being one of the preferred investment destinations in sub-Saharan Africa.

CMSA approval comes after Rabobank had lodged its share transfer request and received necessary regulatory approvals from responsible regulatory authorities in the country.