Atlas Mara inches closer to US$61million Finance Bank takeover

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Finance Bank Footprint across Zambia
Finance Bank Footprint across Zambia

ATLAS Mara, the parent company of retail bank BancABC says it has inched closer to taking over Zambia’s six largest bank as the group continues with its acquisitive strategy to grow its earnings and expand its foothold in the region.

Atlas Mara, an investment company co-owned by former Barclays Plc chief executive Bob Diamond, last year acquired ABC Holdings — which owns BancABC which has its presence in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe.

Earlier this month, the group said it was looking to expand into seven more countries in sub-Saharan Africa through acquisitions.

Announcing its financial results for the nine months to September where it posted an after tax profit of US$7,1 million, the group said negotiations to acquire total control of Finance Bank of Zambia were at an advanced stage.

The group said the financial performance of the Southern region year-to-date was supported by, among other factors, asset recoveries emanating from continued management efforts, particularly the increased focus on non-performing loans and the establishment of new collections activities.

“The potential transaction is subject to the parties entering into definitive documentation and the subsequent satisfaction of selected conditions precedent (including requisite regulatory approvals). The Company expects that definitive documentation will be signed shortly,” the company said in a statement accompanying the financials.

“Subject to agreeing definitive documentation and the subsequent satisfaction of relevant conditions precedent, Atlas Mara anticipates that it would acquire FBZ for approximately US$60 million in cash and 2.6 million Atlas Mara shares (this may increase to US$61 million and up to 5.7 million Atlas Mara shares, subject to a number of conditions, including the Zambian Kwacha/U.S.
Dollar exchange rate at closing and the meeting of specific future profitability targets). Subject to signing definitive documentation, Atlas Mara would expect the transaction to close in Q1 2016.”

The group said once completed, the transaction, which would include the merger of FBZ with Atlas Mara’s Zambian subsidiary, African Banking Corporation Zambia Limited, would result in the creation of Zambia’s largest bank by branch network and fifth largest bank by assets with combined assets of approximately US$418 million.

“The enlarged group would be well-positioned to contribute meaningfully to the development of financial services in Zambia and the potential combination would be consistent with Atlas Mara’s over-arching strategic objective of being a “scale” player in its countries of operation,” the company said.- Zimbabwe Independent

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8 COMMENTS

  1. Things are bad back home. Are those figures correct for a bank. Here in Australia we have a population twice bigger than Zed and the five big banks Commonwealth, Nab, Anzac, St West Pac posted profits of $7.8Billion, 8.1 Billion, 6.3 Billion, and 5.4 Billion Dollars as profit after tax. The mathematics don’t work. Bring back white people to help. At least we should be running at half not 2% of foreign bank performance. I think one of our banks here has twice the national GDP of our country. How sad

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    • The owner of Finance Bank is a sly crook, even acquiring this bank is a risk in itself…I think Mara Group is more interested in the bank’s footprint than anything else.

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  2. Your analysis is correct. After 51 years of economic mismanagement, Zambia is dirt poor. Most of the population do not participate in the money economy, they are unbanked and live on below USD1 per day. You cannot monetise poverty.

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    • Why should they when there is no reward or incentive for them leaving the black market economy. ..in the west the bank’s beg you to put your money for free in there accounts but Zambia its charges even when you are not using your account and your money is accruing interest for them.

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  3. Ba @cat power
    How much have you contributed to Aussie wealth apart from surviving on a credit card. We know how life is in Aussie mate. Try and full your fellow Tsongas in upnd. Mind you Aussie population is on 23m how can that be twice of 14m.

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    • @SpongeBob, Cat Power’s point is even more valid is Australia’s population is not even twice that of Zambia. Sponge bob, why don’t you go and watch cartoons?

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  4. Africans when are you going to wake up and stop glorifying the white man…this Bob Diamond is a mere front man or employee; the money man in this company is the young Asian billionaire founder Ashish Thakkar, a fourth generation African founder of the Mara Group….the African media keeps singing about this Bob Diamond being former Barclays bank boss but never tell you why he was sacked there.
    Anyway in Africa if you want to success at this level where takeovers and acquisitions are involved employ a white man as our people are brainwashed to the point of no return.

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  5. @ Jay Jay YOU ARE SPOT-ON.WE ARE CHARGED FOR BANKING!!!A NAMED BANK CHARGES K150 A MONTH FOR A “PRESTIGE” ACCOUNT!!.THIS IS SLAVERY,THERE IS NO REGULATOR IN ZAMBIA!!!

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