5 Sep 2014 07:00
Atlas Mara to increase its stake in Union Bank of Nigeria to 29.9% for approximately $270 million
Atlas Mara Co-Nvest Limited ("Atlas Mara" or the "Company") announces that it has exercised an option agreement to acquire approximately 20.9% in Union Bank of Nigeria PLC ("UBN") It will purchase the stake from Asset Management Corporation of Nigeria ("AMCON") for a purchase price of approximately $270 million (the "Transaction"). Upon completion of the Transaction, the Company will own a total combined interest in UBN of 29.9%, consisting of the acquisition of the shares from AMCON and the existing UBN shares indirectly held by Atlas Mara through its subsidiary, ADC African Development Corporation AG ("ADC").
UBN is a publicly-traded financial institution with substantially all of its operations in Nigeria. It has a rich heritage dating back to 1917 and, since then, has provided a broad range of banking services to retail and commercial customers, predominantly in Nigeria, sub-Saharan Africa's largest economy. UBN currently has a network of almost 340 branches across the country.
As at June 30, 2014, UBN had approximately $6.3 billion of assets, $1.7 billion in loans, $3.1 billion in deposits and $1.3 billion in equity. It is a household name with one of the most trusted and recognizable brands in Nigeria. Atlas Mara's implied purchase price of the AMCON stake represents a price-to-book multiple for UBN of ca. 1.0x.
John Vitalo, CEO of Atlas Mara said: "I am delighted that we are increasing our stake in such a storied institution. Expanding into Nigeria has been a focal point of our strategy and achieving a significant ownership position in an institution of the size, heritage and potential of UBN represents a unique opportunity. We know the team at UBN and are strong supporters of what they have achieved, as well as their identification of and focus on what there still is to achieve. We at Atlas Mara are committed to building a leading sub-Saharan African financial services group and we look forward to contributing to the transformation of UBN into a Tier 1 Nigerian bank as an integral part of this strategy."
Bob Diamond, Co-Founder and Director of Atlas Mara said: "This is a very significant acquisition for Atlas Mara. With it, we will have a significant stake in a key Nigerian bank and we will also have established strategic market positions in three of Africa's leading economic communities: the Southern Africa Development Community, the East Africa Community and Economic Community of West African States."
Ashish J. Thakkar, Co-Founder and Director of Atlas Mara said: "This is a very exciting announcement for the Company. By increasing our stake in UBN, combined with the completed acquisitions of BancABC and ADC and our pending acquisition of the commercial banking operations of BRD, we are well on the way to becoming a leading African financial institution that will benefit from, and contribute to, the continued growth of rapidly expanding sub-Saharan Africa."
Completion of the Transaction is subject to satisfaction of certain conditions, including receipt of regulatory consents. The parties are working collaboratively to obtain regulatory approval and satisfy closing conditions as promptly as possible. Atlas Mara may be required to provide AMCON with an advance payment of the purchase price, provided AMCON provides security for repayment satisfactory to Atlas Mara. If the conditions to the Transaction are not satisfied or waived before December 31 2014, Atlas Mara may demand repayment of the advanced purchase price. The date may be extended by mutual agreement.
Atlas Mara will be hosting a conference call on Monday, September 8, 2014 at 2pm BST / 9am EDT.
Conference ID is 99237514
The dial-in details are:
UK toll free, 08003767922
US toll free, 18669661396
International, +44 (0) 2071 928000
Contact details
StockWell Communications, +44 (0)20 7240 2486
Anthony Silverman
Robert Morgan
Sard Verbinnen & Co, +1 (212) 687 8080
David Reno
Margaret Popper
About Atlas Mara
Atlas Mara was formed by Bob Diamond, Founder of Atlas Merchant Capital LLC and Ashish J. Thakkar, Founder of Mara Group Holdings Limited, and listed on the main market of the London Stock Exchange in December 2013.
Atlas Mara's strategy is to create sub-Saharan Africa's premier financial institution through a combination of its experience, expertise and access to capital, liquidity and funding and to support economic growth and strengthen financial systems in Africa.
For more information, visit the Company's website at www.atlasmara.com.
About UBN
Union Bank of Nigeria PLC commenced operations in Nigeria in 1917. It became a public company limited by shares in 1970 with its shares quoted on the Nigerian Stock Exchange.
UBN is a retail and commercial bank with its headquarters located in the central business district of Lagos, Nigeria. UBN has subsidiaries and affiliate companies in Nigeria and across West Africa, providing a range of financial services and products through the following major business segments: Retail & Corporate Banking, Mortgage and Real Estate Services, Insurance, Pension, Stock Brokerage and Asset Management Services
About AMCON
AMCON was established on the 19th July 2010, when the President of the Federal Republic of Nigeria signed the AMCON Act into Law.
AMCON was created to assist in reviving the financial system by efficiently resolving the non-performing loan assets of the banks in the Nigerian economy.