BANCABC parent, Atlas Mara, has increased its stake in a Nigerian bank to 49%, as it seeks to cement its foothold in Africa’s largest economy.
BY BUSINESS REPORTER
In a notice on Tuesday, Atlas Mara said it has agreed to acquire an
additional 280 956 166 shares of Union Bank of Nigeria Plc (UBN), representing approximately 1% shareholding in the bank.
“The company will issue 2 360 032 ordinary shares as consideration for the UBN shares acquired,” it said.
The new shares, Atlas Mara said, will rank pari passu with the existing ordinary shares.
Atlas Mara bought into UBN in 2014 when it acquired 20% shareholding, gradually increasing its stake in the 101-year old bank.
In its interim management statement for the first quarter of 2018, Atlas Mara said UBN performance showed continued improvement compared to those in the comparable period last year. It said associate income of $26,3 million for the period (2017: $3,9 million) reflects Atlas Mara’s 48% shareholding in UBN on an equity accounted basis.
“This includes the impact of the $19,2 million gain related to the acquisition of additional shares during the quarter. Excluding this gain, the contribution from UBN is $7,2 million, representing an 82,1% increase in the share of profits, which accounts for both a 20% growth in the earnings from UBN (on a USD basis) and the increased shareholding,” Atlas Mara said.
Co-founded by banker Bob Diamond and billionaire entrepreneur Ashish Thakkar, Atlas Mara, bought a controlling shareholding in BancABC in 2014, as they began a pan-African dream.
The group went on to acquire BPR, the second largest bank in Rwanda and Finance Bank of Zambia Limited.