Former Barclays Boss Bob Diamond Faces Lawsuit Over Zambian Bank Takeover
The High Court in London is hearing a case against Atlas Mara, the company founded by former Barclays boss Bob Diamond, over allegations that it attempted to diminish the value of Zambia’s Finance Bank ahead of a takeover. Dr. Rajan Mahtani, the founder of Finance Bank Zambia (FBZ), initiated the lawsuit, claiming that Atlas Mara breached the terms of the acquisition agreement, and is seeking damages of up to $100 million (£80 million).
Dr. Mahtani, who established FBZ in 1986, agreed to the takeover by Atlas Mara to secure the future of the bank as his daughters had no interest in running the firm. The bank, with 73 branches and over 1,100 employees, was considered one of the most successful in Zambia.
At the heart of the dispute is Atlas Mara’s alleged attempt to reduce the value of FBZ by identifying faults and regulatory issues. The court heard that Atlas Mara had initially offered approximately US$215.4 million for FBZ, with US$135.3 million and an “earn-out” of US$80 million.
During the trial, Dr. Mahtani denied withholding regulatory concerns from the Zambian national Bank (BoZ) before the sale’s completion date. The BoZ audit found that FBZ’s subsidiary, FBS, was under-capitalized by over 30 million Kwacha (around US$4.5 million in 2015), a finding Dr. Mahtani disputed as having no impact on the sale price.
Atlas Mara accused Dr. Mahtani of suppressing information about FBS’s under-capitalization, and internal emails were presented to the court, suggesting that Atlas Mara was not informed until May, months after the BoZ inspection.
Dr. Mahtani defended his actions, stating that Atlas Mara was conducting its due diligence and was aware of the regulatory issues. He claimed that Atlas Mara’s objections were an attempt to bring down the sale price by “finding fault in everything.”
This legal battle adds another chapter to Bob Diamond’s career, following his departure from Barclays in 2012 amid an interbank rate-fixing scandal. Atlas Mara, co-founded by Diamond, was set up to acquire banks in Africa.
The hearing is expected to conclude before Christmas.
Source: Nick Forbes
Central News UK
Dr. Mathani is shady to the bone. First Quantum (FQML) was awarded Luanshya Mine in 2004. The day before President Mwanawasa was supposed to travel to Luanshya for the handing over ceremony, Mathani took in the Directors of J&W Investments to state house and scuppered FQML’s plans. That was how J&W got Luanshya. In return. Luanshya and its sister company Chambishi Metals, banked with Finance Bank
Are you sure of what you’re saying?
You need to revisit the day ZCCM Luanshya division was privatized to Roan Antelope Mining Corporation of Zambia (RAMCOZ) in which BINANI group of Companies were the majority share holders to fully understand the injustice Mwanawasa and his minions did to the people of Luanshya in their bid to attain that HIPC bail out by means of using and sacrificing ZANACO.
You guys from Lusaka are thieves and wannabes who don’t understand a thing about anything and yet you are too loud in as much as you want to lead at all costs which is why Zambia is in such a mess!
Mathani nizi ma Ndola. He’s got a nose to smell even the smallest opportunity.
Good luck with the case.
Mahtani loves court cases. He is a sophisticated conman of Zambia.
All his operations in Zambia are based on bribing politicians and civil servants.
HH shall keep him outside his reach.
Rajan is a good friend and very hardworking. The imperialist messed with the wrong man. His children are disappointment.
@ Kaizar “Kalya-nyoko, kanyenga-nyoko, kandinya-nyoko, katomba-nyoko, Kamyanga-nyoko” Zulu: Only an ugly and evil looter of natural resources like you would call an Indian who has conspired with a fellow Indian from India, to swindle Zambia out of its biggest and most productive copper mine a good person. But of course you yourself are criminal, and so you approve of criminals. You yourself are a fugitive from justice in Zambia, where you are illegally holding on to a diplomatic passport you are not entitled to, even after the government has demanded that you surrender it. You are a law breaker who entered the country illegally, who has refused to appear when summoned by the police. Shut up mathafaka!!!!
Yes! Rajan is a Zimandola ni mwinko waitumpa mu fyakaba. Some say he’s the guy that introduced Agarwal to another Zimandola, LPM. Other Zimandola are the Italian Mafia abena Ventriglia whom he’s still tussling over Zambezi Portland Cement. The Zambian Supreme Court passed judgement in a 1996 case against FBZ after he sold the Bank to Atlas Mara. Another Zimandola, FTJ locked him up on tramped up treason charges. RB took over his Bank after the Deloitte & Touche audit. Simply put, Rajan has 9 lives
Iwe Kaizar Rajan used to give you some pocket money for Chicago’s aii. Now you are pauper stranded in Zim. I hear you are begging all over. Styopet monkey
This is is just the same as Vedanta owner…they’re from the same Indian ethnic and they’re known to be the worst criminals in India….he became rich via massive corruption and stealing during UNIP and he tries to steal and do corruption with government in power
When is money ever enough..?