Atlas Mara to raise $200mn to increase stake in Union Bank

21 Jun 2017
Financial Nigeria

Summary

Atlas Mara was founded in 2013 by Bob Diamond, the former CEO of UK-based Barclays Plc, and Ashish Thakkar, the 34-year-old billionaire CEO of the Mara Group.

Chairman, Atlas Mara, Bob Diamond

Atlas Mara announced today that it signed an agreement with Fairfax Africa Holdings Corporation to raise $200 million to fund the acquisition of an additional stake in Union Bank of Nigeria (UBN).

Under the agreement, Atlas Mara said it agreed to sell $100 million worth of new shares at $2.25 per share to Fairfax and existing shareholders, and sell a $100 million mandatory convertible bond to Fairfax.

Atlas Mara said it plans to use the proceeds of the share and bond sale to acquire an indirect 13.4 percent shareholding in UBN from Clemont Group for $55 million. The transaction – which is still subject to regulatory approval – will raise Atlas Mara’s stake in Union Bank from 31.1 percent to 44.5 percent.

Given the recent launch of a N50 billion rights issue by Union Bank, Atlas Mara said it also intends to utilize the Fairfax proceeds to exercise its rights under the share sale. The company said it will also expand its business lines of markets, treasury, and fintech.

“We have a terrific new partner in Fairfax Africa – a strategic investor and partner who brings permanent capital and a shared vision of the banking opportunities in sub-Saharan Africa,” said Bob Diamond, Chairman of Atlas Mara.

“With Fairfax, we are now better positioned to achieve our full potential and to benefit from the long term trends we see in Nigeria and sub-Saharan Africa. Our team will continue to drive “execution, execution, execution,” to deliver profitability, growth and shareholder value.”

Upon completion of the share and bond sale, Fairfax Africa is expected to acquire a 35 percent stake in Atlas Mara. Fairfax Africa will also nominate four directors out of nine directors to the board of directors of Atlas Mara. Diamond, who is a former CEO of Barclays, will continue as Chairman of the Board.

Atlas Mara was founded in 2013 by Bob Diamond, the former CEO of UK-based Barclays Plc, and Ashish Thakkar, the 34-year-old billionaire CEO of the Mara Group. The company has operations in seven African countries including Nigeria, Rwanda, Botswana, Zimbabwe, Tanzania, Zambia, and Mozambique.


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