17th Jun 2015 08:59
LONDON (Alliance News) - Atlas Mara Ltd Wednesday said it has sold its 10.1% stake in Zimbabwe-focused private equity and advisory firm Brainworks Capital Management (Private) Ltd for USD8.7 million, which it said represents 1.4 times Brainworks' 2014 reported book value.
"This transaction is consistent with Atlas Mara's focus on its sub-Saharan African banking operations and strategy of selling non-core investments acquired in connection with its acquisition of ADC African Development Corporation AG," it said.
Atlas Mara said that its ADC Financial Services & Corporate Development subsidiary signed a deal with a "third party" agreeing to sell its Brainworks stake in exchange for approximately USD3.1 million in cash and 665,195 Atlas Mara ordinary shares. The implied price per Atlas Mara share of USD8.46 was determined based on the 90-day volume weighted average price as at the date initial transaction terms were agreed by the parties.
It expects the deal to be completed by the end of June.
Atlas Mara shares were down 2.9% at USD6.70 in London Wednesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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