Atlas Mara acquisition by Equity Group has flopped as the two firms have mutually agreed to discontinue acquisition transaction discussions citing the need to refine its strategy given the COVID19 pandemic.
Equity Group proposed to acquire Atlas Mara banking assets in Rwanda, Tanzania, Zambia, and Mozambique.
In exchange, Atlas Mara was to get shares in Equity Group.
In January 2020, Equity Group published an update saying that the two firms were yet to sign a detailed transaction agreement and the binding term sheet with respect to the proposed transaction had expired.
At the time, Equity Group remained optimistic that the two firms would pursue further discussions in early 2020 to try to reach mutually acceptable commercial terms.
Equity Group says discontinuation of the transaction was due to the effects of COVID19 pandemic to both the world and economies in which it operates.
In this case, the bank says it has refined its strategy to take into account the COVID-19 pandemic.
Covid go away . It has really affected the whole world. And yet diasporans and evil opposition will claim it is due to pf that the economy is not fairing well. Let us be honest and mature in analysing things
You dont expect alot of bloggers on such insight topics…..talks alot of our preoccupation for politics. meanwhile hope the pull collapse will have little impact on the bank in Zambia and not bring more misery of un employed tellers
You are right Twende, all those shallow minded, same names, whose political opinions are every day forces down our throats will certainly not come to this topic
@Spectre, What’s this story for? You PF are just disappointed that the chance of liquidating Atlas Mara has flopped. You PF are useless, why did you even sale the Zambian company Finance Bank?
Bwalya Ng’andu must formulate a Bill to insulate Zambian domiciled Companies against offshore takeovers. Please refer to the case of the defunct Bank of Credit & Commerce International that transformed into Union Bank when British courts ordered its liquidation. The Bank’s Zambian assets were saved from being taken over because our Laws insulated from such shocks. The sell of Lumwana Mine, Zain, etc have been very embarrassing for Zambia because assets domiciled in our country were sold without our participation and no tax was received. Please ensure that this doesn’t ever happen again. Business is tough
Ayatollah: We hv wht we hv been told is the inner bar of the Law Association of Zambia which comprises state counsels. Where existing laws are inadequate to protect the nation’s interests the inner bar is supposed to render appropriate advice. If it cannot do that, is it worth the prestige it enjoys?
@ Nemwine, Zambia has been let down by lawyers. Some of the injustices we have experienced have been exacerbated by lawyers. Do you tell me that our lawyers couldn’t find a way to get out the unfair development agreements that Zambia entered into with the mine owners? Look at the Zesco – CEC 20yrs BSA! Look at how SABMiller sold Zambian Breweries, Zambia Bottlers, National Breweries and Copperbelt Bottling Company? MTN was about to sell its towers and network and all lawyers were quiet. Most of our lawyers are just rent collectors for their clients. They’ve failed to produce unambiguous laws since Independence. How can our assets be sold without any tax collected? It’s treason!
capitalism is the problem. We now have lawyers who will get information and use to their advantages..engineers who wont stick to their lane. something which still shocks me..the implementation of cargo to move by rail…just because alot of the decision markers have trucks, they wont just accept this noble cause
Atlas Mara has only been in Zambia five minuted already in aquisition. Is this Equity Group reputable or just another bunch of white European investors looking for a soft spot.
If this Equity Group Investments is the same that is headed by Sam Zell, then according to Bloomberg his company isn’t interested in buying anything right now due to covid19, so Atlas Mara is fronting a dead deal to us.
What’s Up Zambia?!
What is Atlas Mara up to. Did they just squire our banking business only to bump up their portfolio before using it to raise 625M on London Stock Exchange and now trying to pass it on underpriced to another group of financial vermines?
Assets will be sold and employees shed off to post” profits’ for share holders -that is what these Equity firms do and so employees beware!
That’s mathani and Nigerians for you. Atles Mara zambia started stinking from the very start bank ABC acquired finance bank zambia.