Press Corporation Limited (PCL) plc has justified its move to divest some of its stakes in three of its subsidiaries, saying the decision is meant to consolidate capital.

Speaking on the sidelines of a stakeholder engagement on Friday in Blantyre, PCL plc acting chief executive officer Lyton Chithambo said the move does not threaten jobs as the companies affected will not close, but rather transfer shareholding to other equally capable businesses.

He said: “Some of the divestures we are doing is to consolidate capital. You already know that in telecommunications, we are in Open Connect Limited and TNM plc, so our moving out of Malawi Telecommunications Limited [MTL] is to make sure that we concentrate on those businesses.

“We need to move our capital to other equally important areas where we are focusing on infrastructure, construction and energy. This is part of diversification that we are focusing.”

In its summary of audited financial results for the year ended December 31 2021, PCL said it divested its 52 percent shareholding in MTL and that discussions with equity investors in the telephony business are at an advanced stage.

During the year under review, PCL also divested its 100 percent shareholding in retail chain People’s Trading Centre.

The disposal was concluded subsequent to the balance sheet on February 28 2022 and control of the retail chain passed on to the new investor Tafika Holdings.

In 2021, PCL also divested from Castel Malawi Limited by disposing of its 20 percent stake, a transaction which contributed K9.6 billion to the 125 percent profit-after tax of K45. 131 billion made in 2021, which was mainly driven by performance in the financial and energy sectors.

Chithambo said the profit jump was a result of “fruits of a number of painful steps we took for the past few years”.

PCL board chairperson Radson Mwadiwa said the conglomerate aspires to grow its business by enhancing the image and improving the sustainability of the group through meaningful growth and diversification.

He said: “We are not where we are supposed to be and that is why we are focusing on continued growth and diversification.

“With the unpredictable operating environment, the importance of multiple revenue sources generation through provision of diverse range of products and services needs no emphasis.”

During the year under review, PCL total dividend in respect of the 2021 financial year will be K4.089 billion, representing K34 per share.

The final dividend will be approved by shareholders during its annual general meeting scheduled for July 2022.

Press Corporation plc is one of the blue chip on the 16-counter Malawi Stock Exchange.

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