Atlas Mara, Union Bank’s Principal Owner, Mulls Sale of 50% Stake

Posted on January 24, 2021

Atlas Mara, the holder of the biggest stake in Union Bank of Nigeria is contemplating its future with the Lagos-based lender, as its 49.97 per cent ownership has received acquisition offers from domestic bidders, Bloomberg has reported, citing insiders familiar with the subject.

Early interests in the shareholding of Atlas Mara, a financial services holding company, quoted on the London Stock Exchange, are coming from local banks intent on widening their reach in the Nigerian market, according to sources pleading anonymity because negotiations are still under wraps.

Atlas Mara is currently engaging financial advisor Rothschild & Co. but the deal could be consummated as an outright sale or take another direction as the landscape of a definite takeover is not yet clear.

Nigeria’s biggest lender, Access Bank, is forging a deal with the firm to buy its assets in Zimbabwe, Botswana and Zambia, with that deal close to being delivered.

The bank said at an analyst call this week it was looking to gain traction in the financial markets of eight other African countries in a bid to leverage the potential of the continent’s new free trade agreement.

Atlas Mara, based in British Virgin Islands, is paring down its size, following a growth plan that went bad in that it wrongly estimated competition in Africa when it overpaid for acquisitions.

The company’s share of Union Bank, which has a market value of N161.620 billion, is its largest asset and is viewed as a strategic positioning in Africa’s biggest economy.

Bob Diamond, who jointly founded the financial services group, vacated his post as chair of Atlas Mara about two years ago for Michael Wilkerson, chairman of Fairfax Africa, which wields 49% stake in the company.

Union Bank closed trade on the floor of the Nigerian Stock Exchange on Friday at N5.55 per share, up by 1.83%.

Spokespersons for both Union Bank and Atlas Mara declined comments.

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

The Executive Chairman of Ojodu LCDA and APC flagbearer for the upcoming Local Government... Continue
The International Council for Beverages Association (ICBA) has expressed deep concern about the World... Continue
Justice Chukwujekwu Aneke of the Federal High Court in Lagos has granted an order... Continue
The Oyo State College of Nursing and Midwifery, Eleyele, Ibadan and the Gender Mobile... Continue
CYRIACUS IZUEKWE  As the Association of Community Pharmacists of Nigeria (ACPN) prepares for its... Continue
PalmPay, a leading digital banking platform in Africa has announced the launch of strategic... Continue
The Oyo State government has reaffirmed its ban on mobile phones, smart watches, including... Continue
Founder of The Africa Soft Power Group, Dr Nkiru Balonwu, will deliver the keynote... Continue
BEN AHANONU For quite some time, the so-called Orlu Political Consultative Assembly, OPOCA, has... Continue
The Lagos Zonal Directorate 2 of the Economic and Financial Crimes Commission, EFCC, on... Continue

UBA


Access Bank

Twitter

Sponsored