Atlas complete acquisition of BancABC
Keikantse Lesemela | Thursday September 4, 2014 15:10
ABC group CEO, Douglas Munatsi said 96 percent of the bank’s shares have already been snapped up by the London Stock Exchange listed firm and only four percent of shares would be finalised after a shareholder vote.
In connection with these transactions, Atlas Mara’s ordinary shares and warrants were temporarily suspended from trading on April 1, when the company announced its intention to acquire a majority of BancABC and make a voluntarily public offer to acquire 100 percent of African Development Corporation (ADC).
ADC was the majority shareholder in ABC Holdings, which owns the retail bank BancABC.
The acquisition represents a 58.9 percent direct interest and a 37.75 percent indirect interest through ADC. Atlas Mara has issued about 11.3 million ordinary shares to over two million ordinary shares to ADC shareholders who accepted the offer and further issued over two million ordinary shares in pursuit of BancABC acquisition.
The statement by BancABC explained that the company was taking the opportunity to update the market on corporate and financial highlights since its IPO in December 2013. Following its $325 million, Atlas Mara has obtained access to additional equity capital of $300 million from the private placement of ordinary shares announced in May 2014.
“With the successful completion of these acquisitions, Atlas Mara is now a fully operational entity and able to continue to execute its strategy of becoming Sub-Saharan Africa’s premier financial institution,” reads the statement.
Its acquisition of BancABC provides access to investments in East and Southern Africa, particularly in Botswana, Mozambique, Zimbabwe, Zambia and Tanzania.
The company entered into a commitment agreement in June 2014 that provides for debt facilities of up to $200 million to support future growth, subject to certain customary conditions. “The company remains on track to complete its previously announced acquisition of the commercial arm of BRD, the development bank of Rwanda,” said the statement.
Upon completion of the BRD transaction, Atlas Mara will also have a valuable platform in Rwanda for expansion in the East African community.