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Tuesday, 13 October 2020

ATLAS MARA GETS NEW BUYER AFTER EQUITY GROUP SNUB

London-based Atlas Mara Limited is set to sell a 100 percent stake in its Mozambican banking subsidiary to Nigeria’s Access Bank after Equity Group walked out of the deal in June.

Equity had signed an agreement with Atlas Mara to buy 62 percent of the share capital of Rwanda’s Banque Populaire du Rwanda and 100 percent of African Banking Corporation of Zambia, African Banking Corporation Tanzania and African Banking Corporation Mozambique.

The Kenyan banking multinational later decided to terminate the deal, citing increased risk from the outbreak of the Covid-19 pandemic. Equity would have also been required to inject additional capital into the banks, most of which are in losses.

Atlas Mara says it has reached a new deal to sell BancABC Mozambique to Access Bank, adding that more divestitures could follow.

“This transaction with Access Bank is an important step in our broader repositioning of the group as a streamlined holding company, with an increased focus on core markets,” the company said in a trading update.

“In addition to the transaction announced … the company continues to evaluate a number of strategic options, which may include additional divestiture or partnership transactions, or other alternatives that align with these and other objectives for the benefit of Atlas Mara.”

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