LONDON (Alliance News) - Atlas Mara Co-Nvest Ltd Monday said it has agreed to acquire a majority stake in sub-Saharan African bank ABC Holdings Ltd (Banc ABC) and ADC African Development Corporation AG for up to USD265 million in cash and shares.
In a statement, Atlas Mara, co-founded by ex-Barclays Chief Executive Bob Diamond, said it has reached conditional purchase agreements to acquire a majority of BancABC for USD0.82 per share or the Atlas Mara share equivalent. Atlas Mara said it has also agreed to make a voluntary public takeover offer for all outstanding ADC shares. Another agreement, under which Atlas has said it intends to make a mandatory public offer for all remaining outstanding shares of BancABC, subject to completion of the conditional purchase agreements.
Atlas Mara said it is committed to providing up to USD100 million of equity to BancABC when the transaction is completed in order to drive growth, as well as to support BancABC's management in obtaining additional liquidity, including raising Tier II capital.
Atlas Mara said it expects the transactions to be completed by August 31, subject to certain conditions and regulatory clearances.
ADC is a Frankfurt-based, open market listed, Africa-focused, emerging pan-African banking group. It has an indirect 47.1% stake in BancABC, including shares representing 9.3% of BancABC held subject to a call option agreement with BancABC management. It also has an indirect 9.1% stake in Union Bank of Nigeria, and a portfolio of innovative, financial services-oriented, private equity holdings.
The company said it has requested the suspension of its shares and warrants until the transactions are completed.
Bob Diamond said he is pleased to have merged with BancABC and ADC.
"When we founded Atlas Mara, we did so with the intention of identifying and partnering with exceptional multi-country African financial services companies. Our objective is to build Africa's premier financial services group leveraging the access to capital, liquidity and funding that we at Atlas Mara can provide," Diamond said in a statement.
"Our future growth will be based on expanding on Dirk Harbecke's vision at ADC and on the foundation created by Douglas Munatsi and his team at BancABC, who have built a fast-growing, prudently-managed, African banking institution," Diamond added.
The transactions are expected to be funded through proceeds of Atlas Mara's previously completed initial public offering and the issuance of Atlas Mara shares.
Atlas Mara was formed by Atlas Merchant Capital LLC and Mara Group Holdings Ltd and listed on the main market of the London Stock Exchange in December 2013.
Atlas Mara shares Monday closed at USD11.49, up 0.8%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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