Telekom Networks Malawi (TNM), whose main rival is the local unit of India's Bharti Airtel, said in a statement it had submitted applications to the country's communications and competition regulators, and to the stock exchange.
"TNM believes this acquisition will enable us to establish and deliver a broad range of telecommunications services to our business customers, as well as providing enhanced services to Burco's existing customers," it said.
The operator plans to use part of its 25 million US dollar infrastructure expansion budget for the acquisition, it said.
TNM, majority owned by Malawian conglomerate Press Corporation, has more than 2.5 million subscribers in the African country of 16 million people.
It posted a 48 per cent jump in revenue to 17.5 billion kwacha (37 million US dollars) in the first six months of this year, while its shares have risen 90 per cent so far in 2014.