In a notice sent to the London Stock Exchange (LSE), Atlas Mara, the Pan African banking vehicle set up by Bob Diamond, announced it had acquired an additional 1% stake in tier two lender, Union bank. This amounts to 280,956,166 shares. There was no disclosure on which investors the shares were bought from. Private equity firm, African Capital Alliance (ACA) also owns a stake in the bank.
The firm has progressively increased its stake in the lender since acquiring a 20% stake from the Asset Management Company of Nigeria (AMCON) in 2012.
Prior to the rights issue by Union Bank in 2017, Atlas had a 42% stake in the bank. After its conclusion, it then purchased additional shares bringing its total holding to 48%. The current acquisition takes it to 49%.
In 2017, it spent $55 million on acquiring a 13% stake in Union bank from the Clermont group. The Clermont Group is part of the UGPL consortium that bought a majority stake from AMCON in 2012.
Mode of funding
The Company will issue 2,360,032 ordinary shares as consideration for the Union Bank shares acquired.
Atlas had also issued new shares to enable it take up its stake in last year’s issue.
Could a take over be near?
Atlas is 1% shy from the 50% point. At that point, it would have to make a mandatory tender offer to minority shareholders.
The Investment and Securities Act (ISA) states that a company which increases its stake beyond 30% must do an MTO. A company holding between 30%-50%, which increases its stake, must also carry out an MTO.
Atlas Mara Limited (formerly known as Atlas Mara Co- Nvest Limited), founded on November 28, 2013, by Bob Diamond and Asish Thakkar, is an Africa focused financial services holding company. Atlas has over 1,600 employees, an asset base of $2.5 billion and operations in 7 African countries namely Botswana, Zimbabwe, Tanzania, Mozambique, Rwanda and Nigeria.
Union Bank, founded in 1917, is one of Nigeria’s oldest commercial banks. The Asset Management Company of Nigeria (AMCON) injected N239 billion as capital into the bank in 2011.
Then Central Bank of Nigeria (CBN) Governor, Lamido Sanusi, in August 2009 removed the Chief Executive Officer (CEO) of the bank, Barth Ebong, alongside four others. Sanusi hinged his action on high level of non-performing loans and poor corporate governance. Funke Osibudu was subsequently appointed acting CEO.
Union Bank shares are currently trading at N5.85 in today’s trading session on the Nigerian Stock Exchange (NSE) down 0.85%.
Results for the first quarter ended March, 2018, show gross earnings increased from N33.84 in 2017 to N39.46 in 2018. Profit before tax also rose from N4.6 billion in 2017 to N5.4 billion in 2018. Profit after tax surged massively from N4.5 billion in 2017 to N5.2 billion in 2018.
I thought the trading of African blacks by the white man have ended about 100yrs ago,now what we are experiencing.is neo-trading of Africans slaves by the white man.What is Godwin is doing about it ?,i do not know,under solodu white foreigner bought control of IBTC.
Now,Mr Diamond have almost control of union Bank,Godwin what are you going to do about it ?,once you read Mr Eric William book” Capitalism and slavery” Mr William a former descendant of African slaves from Barbados it shows.how the white man trade in their fellow human being,this trading of Africa people financed the british or the first industrial revolution and the americans capitalism,it built and financed Liverpool,bristol and London,it made some English people wealthy,the Barclays family,the Lloyd,the Barclays family are quakers.They were involved in banking,which bears their name today,lloyd insurance,they were insuring ship and goods,and banking.john Lloyd at his coffee shop,banker exchanges cheques,i.e the fore-runners present day of reconcillation and settlement of cheques.
Once you read this book,we will pull out of this commonwealth,which commonwealth ? we will domicle our forex reserve.the jews were not spared in this misery,The Rothchild a merchant bankers were involved in this madness or Mr Buhari what are you going to to about it ? about this parasite and hypocrite.Mr trump have the audacity to comment about Nigerian problem