Atlas Mara’s subsidiary ABC Holdings selling stake in African Banking Corporation Mozambique
LONDON: Atlas Mara Limited’s subsidiary ABC Holdings Corporation Limited (ABCH) has entered into definitive agreements with Access Bank Plc for the sale of ABCH’s holdings in African Banking Corporation Mozambique (BancABC Mozambique), a news release said.
The transaction will include upfront cash consideration payable at closing equal to approximately 0.8 times book value as of 30 June 2020, plus additional cash consideration payable 24 months after closing of the transaction, subject to certain conditions.
Michael Wilkerson, Executive Chairman of Atlas Mara, said, “In 2019 the board of Atlas Mara commenced a review of strategic options to best drive shareholder value. This included a review of each banking operation, and potentially partnering in or exiting markets where we do not have a clear near-term path to acceptable scale and profitability. As part of this review we have evaluated indications of interest from a number of potential partners and transaction counterparties.
“This transaction with Access Bank is an important step in our broader repositioning of the Group as a streamlined holding company, with an increased focus on core markets. BancABC Mozambique has shown remarkable resilience this year during the pandemic, and we commend the management team for their work in serving our customers. By combining with Access Bank’s infrastructure and existing footprint, they will be well equipped to continue on the positive trajectory achieved to date.”
“As communicated in June 2020, Atlas Mara remains committed to implementing the previously announced strategic decisions of the board, which include focusing on improving performance in core markets, streamlining the holding company structure and related costs, and exiting or partnering in certain countries. In addition to the transaction announced today, the Company continues to evaluate a number of strategic options, which may include additional divestiture or partnership transactions, or other alternatives that align with these and other objectives for the benefit of Atlas Mara. The Company will update the market in due course as these opportunities develop.”
Atlas Mara Limited (LON: ATMA) is a financial institution listed on the London Stock Exchange. Atlas Mara aims to be a positive disruptive force in the markets in which we operate by leveraging technology to provide innovative and differentiated product offerings, deliver excellent customer service and accelerate financial inclusion.
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