Atlas Mara Co-Nvest, the African investment vehicle of former Barclays chief Bob Diamond, has agreed to buy additional 20.9% stake in Nigeria’s Union Bank for $270 million from Asset Management Corporation of Nigeria (AMCON).
Atlas Mara will own a total combined interest of 29.9% in UBN after the completion of the deal.
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UBN, which provides banking services to individuals and companies in Nigeria through almost 340 branches, had assets of about $6.3 billion at the end of June.
Bob Diamond said: "This is a very significant acquisition for Atlas Mara. With it, 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."
John Vitalo, CEO of Atlas Mara said: "I am delighted that we are increasing our stake in such a storied institution. Expanding into Nigeria has been a focal point of our strategy and achieving a significant ownership position in an institution of the size, heritage and potential of UBN represents a unique opportunity. "
Completion of the transaction is subject to satisfaction of certain conditions, including receipt of regulatory consents.
Atlas Mara, which raised $325 million in an initial public offering last year to add to its acquisition war chest, has been expanding through stakes such as in the Development Bank of Rwanda and ABC Holdings.
