Atlas Mara to sell big stake to Fairfax Africa, to boost share in Nigerian bank
Atlas Mara represents a unique opportunity to invest in many profitable banks in the region at a very attractive valuation
Atlas Mara, hit by its share price falling almost 80% since its initial public offering (IPO), plans to raise more than its market value by selling a 35% stake to Fairfax Africa Holdings. The company, led by co-founder Bob Diamond, said on Wednesday that it expected to get $200m from selling new stock to existing shareholders and Fairfax Africa. It would also issue a fresh convertible bond to the Toronto-based investment company. Atlas Mara would use the proceeds to boost its holdings in Union Bank of Nigeria to 44.5%, from about 31%. Atlas Mara, which owns banks in seven African countries, has plunged in value since its December 2013 public offering as growth on the continent slumped and currencies weakened amid a commodities rout. In February, Diamond ousted then CEO John Vitalo and pledged to cut annual operating costs by $20m after rising expenses threatened its ability to expand through acquisitions. Union Bank, Atlas Mara’s single biggest investment in Africa, is Nigeria’s wor...
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