Atlas Mara sells 25% stake in BSE float

Atlas Mara Limited, the sub-Sahara African financial services group, says BancABC Botswana, which is currently a wholly-owned subsidiary of the company through ABC Holdings Limited (ABCH), has launched an IPO on the BSE in which ABCH will sell up to 24.9% of its shareholding in BancABC Botswana. “This IPO marks an important milestone for BancABC Botswana, whose listing is expected to further support its growing corporate stature in the local market as it seeks to diversify client offerings and grow market share, while benefiting from the support of local institutional relationships,” said John Staley, Chief Executive Officer of Atlas Mara.

Banc ABC (pic by VIDAC)

“For Atlas Mara, achieving a local listing of BancABC Botswana further demonstrates the underlying value in our banking subsidiaries across Africa while also securing additional resources to support execution of our near-term strategic priorities.”

The Offer, which is expected to close in early December 2018, represents a valuation multiple of 1.5 times book value (as at 30 June 2018) and has received irrevocable subscriptions from several local institutional investors for a substantial majority of the shares in the Offer. Atlas Mara invested in BancABC Botswana in 2014 through its acquisition of ABCH. Following the IPO, Atlas Mara will remain a significant, majority shareholder as it continues to drive the execution of BancABC Botswana’s long-term strategy.