Tuesday, April 23, 2024

Business as usual as Atlas Mara completes acquisition of BancABC

The successful completion acquisitions of ABC Holdings Limited, BancABC’s by Atlas Mara is now a fully operational entity able to continue to execute its strategy of becoming Sub-Saharan Africa’s premier financial institution.

Atlas Mara has closed its acquisitions of BancABC and African Development Corporation (ADC), after which Atlas Mara has acquired a beneficial interest of 95.84 percent in BancABC, representing a 58.09 percent direct interest and a 37.75 percent indirect interest through ADC.

The Company is said to be on track to complete its previously announced acquisition of the commercial arm of BRD, the development bank of Rwanda, and will continue to keep shareholders informed of developments with respect to closing.

┬áBancABC Group Chief Executive Officer (CEO), Douglas Munatsi, said on Tuesday that as a result of its acquisitions of BancABC and ADC, Atlas Mara now has operations in five countries ÔÇô Botswana, Mozambique, Tanzania, Zambia and Zimbabwe.
He said it also has minority investments in Nigeria and Kenya.

Munatsi said the acquisitions have created a strong foothold for Atlas Mara in the commercially important Southern African Development Community (SADC).

“BancABC will keep its name and each one of the businesses Atlas Mara is acquiring at this stage will retain their own identity because there is obviously brand equity issue. That is the plan for now for the foreseeable future,” he said.

The BancABC Group CEO said that in connection with these transactions, Atlas Mara’s ordinary shares and warrants were temporarily suspended from trading on April 1, 2014 when the company announced its intention to acquire a majority of BancABC and make a voluntary public offer to acquire 100 percent of ADC.

┬á“We will venture into technological mobile solutions in banking it is expected to take place soon in a couple of months. The reality of implementing it is that it might take some time,” said Munatsi.

Following its $325 million IPO in December 2013, Atlas Mara has obtained access to additional equity capital of $300 million from the private placement of ordinary shares announced in May 2014, which will settle upon readmission.

┬á“Atlas Mara’s shareholder base is comprised primarily of “blue chip” institutional investors and the Company was particularly pleased by the high level of participation in the private placement by substantially all of its IPO investors,” said Munatsi.

Led and formed by Atlas Mara Bob Diamond, founder of Atlas Merchant Capital LLC and Ashish Thakkar, founder of Mara Group Holdings Limited, it was listed on the main market of the London Stock Exchange in December 2013.

The duo are of the view that they have in place one of the strongest management teams they have seen in an African financial institution and, with BancABC, can add value and are the right team to ensure that the banks deliver the service corporate, SMEs and retail customers require.
Atlas Mara 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.


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