5th Sep 2014 07:28
LONDON (Alliance News) - Atlas Mara Co-Nvest Ltd, the investment vehicle backed by former Barclays PLC boss Bob Diamond, Friday said it has exercised an option over a 20.9% stake in Union Bank of Nigeria PLC, bringing its entire holding in the business to 29.9%.
In a statement, Atlas Mara said it will purchase the 20.9% stake in UBN from Asset Management Corp of Nigeria for about USD270.0 million. The 29.9% stake is made up of that stake combined with shares indirectly held by Atlas Mara through its subsidiary ADC African Development Corporation AG.
Atlas Mara is investing in financial institutions in Africa as European lenders retreat from the continent due to the pressures of meeting new international regulations on capital and liquidity requirements. It floated on the London Stock Exchange in December 2013 in an IPO that raised USD325.0 million gross. It has raised a further USD300.0 million since the IPO and has secured up to USD200 million in debt facilities.
UBN, which according to Atlas Mara currently has 340-strong branch network across Nigeria, had about USD6.3 billion of assets, USD1.7 billion in loans, USD3.1 billion in deposits and USD1.3 billion in equity at the end of June, Atlas Mara said, adding that the implied purchase price of the 20.9% stake represents a price-to-book multiple for UBN of about 1.0x.
"Expanding into Nigeria has been a focal point of our strategy and achieving a significant ownership position in an institution of the size, heritage and potential of UBN represents a unique opportunity," Atlas Mara Chief Executive John Vitalo said in a statement.
Bob Diamond, co-founder and director, said the acquisition is very significant for Atlas Mara.
"With it, we will have a significant stake in a key Nigerian bank and we will also have established strategic market positions in three of Africa's leading economic communities: the Southern Africa Development Community, the East Africa Community and Economic Community of West African States," Diamond said.
Atlas Mara shares were trading flat at USD10.25 per share early Friday.
By Samuel Agini; [email protected]; @samuelagini
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