Atlas Mara, the African investment vehicle of former Barclays CEO, Bob Diamond, and Ugandan entrepreneur, Ashish Thakkar, has successfully increased its stake in Union Bank of Nigeria Plc to 29.9 percent. This was facilitated via the acquisition of about 20.9 percent of Union Bank’s holdings from the Asset Management Corporation of Nigeria (AMCON), for a purchase price of approximately $250 million.
Last month, Atlas Mara said in a statement that it was still searching for acquisitions in its bid to build sub-Saharan Africa’s leading bank. “Atlas Mara will continue to execute its plans for safeguarding, integrating and growing its operating businesses while also continuing to evaluate acquisition opportunities in its existing, as well as other, attractive Sub-Saharan African markets,” the company said in a trading statement.
Since its establishment in 2003, Atlas Mara has made several significant acquisitions including, but not limited to, the purchase of a 50.1 percent stake in Botswana-headquartered pan African BancABC.
Union Bank, which has 340 branches across Nigeria and had about N1.008 trillion ($5.5 billion) of assets, N409 billion ($2.2 billion) in deposits and N208 billion ($1.1 billion) in equity at the end of June is undergoing a rebranding exercise to make the bank more competitive. Established as Colonial Bank in 1917, and owned by Barclays from 1925 until the 1970s, Union Bank’s market capitalization is about N136 billion ($737 million).
“This is a very significant acquisition, we will have a significant stake in a key Nigerian bank and we will also have established strategic market positions in three of Africa’s leading economic communities: the Southern African Development Community (SADC), the East Africa Community (ECA) and Economic Community of West African States (ECOWAS),” a statement from Atlas Mara stated.
Atlas Mara had also recently stated that it plans to improve efficiencies, controls and governance and address shortcomings in the credit processes of its businesses in order to drive growth. It hired Richard Muller, formerly of Barclays Plc and Absa Group Ltd, as Chief Integration Officer as a way of ensuring the synergies from acquired businesses are delivered.
By Emmanuel Iruobe
