LONDON: Atlas Mara Limited’s subsidiary ABC Holdings Limited (ABCH) has entered into definitive agreements with Access Bank Plc for the sale of ABCH’s holdings in African Banking Corporation Botswana.
The Transaction is subject to fulfillment of various customary conditions precedent including certain regulatory requirements and consents from other relevant authorities and certain counterparties.
As part of the Transaction, Access Bank will acquire ABCH’s 78.15% shareholding in BancABC Botswana for cash consideration representing approximately 1.13 times book value including a deferred portion payable 24 months after closing of the transaction, subject to certain conditions.
The Transaction is expected to conclude in the second quarter of 2021, assuming all relevant approvals are received by then.
Michael Wilkerson, Chairman of Atlas Mara, said, “The Transaction announced today is consistent with the objectives articulated by the Company as part of its previously-announced strategic review and overall debt restructuring.
The pandemic-related economic slowdown in 2020 led to a broadening of the initially-announced strategic review and an acceleration of potential transaction discussions in-line with the Company’s objective of a comprehensive restructuring of the Company’s and ABCH’s balance sheets.
This Transaction, like the previously announced transactions for Mozambique, Rwanda and Tanzania, is consistent with this strategy and will help realize value for the Group’s creditors and other stakeholders.
He continued, “BancABC Botswana has achieved a great deal since Atlas Mara’s initial investment in 2014, including in digital adoption and in growing a high-quality retail operation. Management have shown strong resilience and further innovation during the pandemic-related economic slowdown of 2020, and we thank the team for their hard work. By combining with Access Bank’s infrastructure, including its digital offerings and its corporate and SME capabilities, the bank will be well positioned to continue the positive trajectory and succeed in the macroeconomic recovery to come.”
Atlas Mara Limited 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. www.atlasmara.com