New ABC shareholder opts against board changes

While categorically indicating no immediate changes were planned in the ABC board of directors, ABC said the pledge did not amount to a declaration that ADC will be hands tied in effecting changes in terms of the law. ABC is the holding company of retail bank BancABC. ADC increased its effective shareholding in ABC from 25,94% to a controlling 51,94% after underwriting the group's US$50 million rights offer in 2012 to enable the financial group to raise more capital. In terms of the Botswana Stock Exchange rules on mergers and acquisitions, a shareholder should make a mandatory offer to buy out minorities once they raise their voting rights shareholding above 34,99%.

ADC had received a waiver against making a mandatory offer provided it sold shares acquired through the rights offer and if it was prepared not to exercise rights attached to the shares acquired through the cash call.