Bob Diamond’s Atlas Mara Increase Stake In Union Bank of Nigeria With $275m

 Onyedimmakachukwu Investing, Investors, M & A

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VENTURES AFRICA – Atlas Mara, the African investment vehicle of former Barclays boss Bob Diamond announced today that it has paid $275 million for a further 20.9 percent stake in Union Bank of Nigeria. This takes investment company’s stake in the Nigerian Bank to 30 percent, it already held a 9.1 percent stake in the bank through its earlier purchase of Africa Development Corp.
Atlas Mara, set up last year by Diamond and Ugandan Billionaire entrepreneur Ashish Thakkar, had prior to this latest investment spent $265 million in acquisitions, buying a majority stake in BancABC. The firm targets to be Africa’s leading bank through
acquisitions; it’s previous investments have seen it gain a foothold in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe and Nigeria.
“We looked extensively at where the best opportunities would be in Africa and we had our sights on a high-quality, multi-country bank in one of the regions of Africa,” Diamond told reporters earlier in the year, “we are not passive investors, we want to truly add value.” Last month Atlas Mara raised $300 million in preparation for further acquisitions.

Bob Diamond and Atlas Mara are relentless in their pursuit for more African acquisitions

Regarded as one of the world’s best-known bankers, Diamond spearheaded the growth of Barclays’ investment bank before being forced out in 2012 by UK regulators after the bank was fined for the attempted rigging of Libor interest rates. According to Reuters, “his plans in Africa could put him in direct competition with Barclays, which has had a presence there since the 1920s and is one of the biggest international banks on the continent”.
Commenting on the increased Union Bank stake Diamond said, “This is a very significant acquisition … we will have a significant stake in a key Nigerian bank and we will also have established strategic market positions in three of Africa’s leading economic communities: the Southern Africa Development Community, the East Africa Community and Economic Community of West African States,”.
One of Nigeria’s oldest banks, Union Bank of Nigeria was established as Colonial Bank in 1917, and from 1925 until the 1970s was owned by Barclays. The bank’s market capitalisation stands at about $850 million, with an estimated $6.3 billion of assets, $3.1 billion in deposits and $1.3 billion in equity at the end of June. Headquartered in lagos, the bank has 340 branches across Nigeria.