LONDON (Alliance News) - Africa-focused financial services group Atlas Mara Ltd said on Wednesday it will sell a 25% stake in subsidiary BancABC Botswana following the subsidiary's launch of an initial public offering on the Botswana Stock Exchange.
Through ABC Holdings Ltd, Atlas Mara will sell 180.5 million shares at a price of BWP2.00 per share, or 0.14 pence, valuing the 25% interest at BWP361 million, about GBP25.8 million.
Atlas Mara currently owns 100% of BancaABC Botswana.
The IPO is expected to close on December 10, that will see BancABC Botswana listed on the main board of the BSE. Following the IPO, Atlas Mara said its expects to remain a significant shareholder in the company.
"This IPO marks an important milestone for BancABC Botswana, whose listing is expected to further support its growing corporate stature in the local market as it seeks to diversify client offerings and grow market share, while benefiting from the support of local institutional relationships," said Atlas Mara Chief Executive Officer John Staley.
"For Atlas Mara, achieving a local listing of BancABC Botswana further demonstrates the underlying value in our banking subsidiaries across Africa while also securing additional resources to support execution of our near-term strategic priorities," Staley added.
Shares in Atlas Mara were down 4.9% at USD2.05 on Wednesday.