German firm eyes BancABC takeover

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German financial services group, African Development Corporation (ADC) is looking to take over Pan African focused banking group, ABC Holdings through buying out minority shareholders.

Botswana Stock Exchange (BSE) listed ABC is the holding company for retail bank, BancABC, which has operations in five southern African countries. ADC, which is already a majority shareholder in the Botswana Stock Exchange (BSE) listed bank, says it will undertake a mandatory takeover offer of P5.05 per share to shareholders on the BSE. Shareholders on the Zimbabwe Stock Exchange (ZSE), where BancABC has a secondary listing, will be offered 0.60 cents per share.

Following last year's rights issue, ADC increased its shareholding in BancABC from 23 percent to 41.7 percent, leaving other minority shareholders exposed to a takeover.According to BSE regulations, if a shareholder increases its stake to or above 35 percent in a listed entity, it would then be obliged to make a buyout offer to the rest of the shareholders.In a statement released this week, ADC said that its management and board has resolved to engage in pooling agreements with aligned investors in ABC Holdings Limited and additionally submit a mandatory takeover offer to the minority shareholders of BancABC.

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