Modupe Gbadeyanka
By Modupe Gbadeyanka
Atlas Mara Limited has indicated its interest to raise about $200 million from the sale of new stock to Fairfax Africa Holdings Corporation so as to enable it increase its stake in Union Bank of Nigeria from 31 percent to 44.5 percent.
The firm said in a statement on Wednesday, June 21, 2017, that the equity would be sold to Fairfax and existing shareholders through the issuance of convertible bonds.
“A strategic partnership with Fairfax Africa creates a strong relationship between two like-minded, long-term investors in Africa.
“Each is focused on capitalizing on the long-term growth potential of Africa and provides permanent capital to support growth,” Atlas Mara said in the statement.
The firm revealed that it had already reached an agreement with Clermont Group for $55 million (N16.83 billion), which is about 13.4 percent of its (Clermont Group) equity in Union Bank of Nigeria Plc.
Union Bank is one of Nigeria’s worst-performing bank stocks this year and the lender has been struggling to cope with the economic recession in the country.
The lender was established in 1917 and listed on the Nigerian Stock Exchange in 1971. It boasts of an extensive network of over 300 branches across Nigeria.
The bank was founded in 1917 as Colonial Bank and in 1925, Barclays Bank acquired Colonial Bank, changing the name to Barclays Bank (Dominion, Colonial and Overseas) or Barclays Bank (DCO).
In 1969, Barclays Bank DCO was incorporated in Nigeria, as Barclays Bank of Nigeria Limited, to comply with new banking laws enacted in 1968.
