Two Nigerian banks, Zenith Bank Plc and Access Bank Plc, have indicated interest in acquiring Union Bank of Nigeria Plc and other African assets of Atlas Mara Group, a pan-African banking group.
Other financial institutions from Africa and the Middle East have also indicated interest in the bank, Bloomberg reports.
The report quoted sources familiar with the matter to have disclosed that Atlas Mara Limited, the London Stock Exchange-listed pan-African banking group started by Mr. Bob Diamond has received a number of approaches for its 49.97 percent holding in Lagos-based Union Bank.
Zenith and Access banks are among the suitors that have expressed interest alongside other African rivals such as Morocco’s Attijariwafa Bank. Middle Eastern banks and private equity suitors have also shown interest and some potential buyers have indicated that they may acquire all of Atlas Mara’s remaining assets in Africa, which would include its Zimbabwe unit, Bloomberg quoted the sources to have said.
Atlas Mara has been working with Rothschild & Co. to consider options for its Union Bank stake. No final decisions have been made, and there’s no certainty the deliberations will lead to a transaction, the sources said.
A deal could bring down the curtain on Atlas Mara’s African foray after Diamond, a former Barclays Plc chief executive officer, misjudged competition on the continent and overpaid for acquisitions.
The company said recently that it’s secured regulatory approval for the sales of its businesses in Botswana and Mozambique and received interest in other assets, without elaborating.
Atlas Mara also said it completed a planned restructuring process and extended a standstill agreement with its creditors to May 17 to complete the necessary documentation. It’s still in legal disputes with two creditors, TLG and Norsad, it added.
The coronavirus pandemic has accelerated the need to reposition the company, which has seen a plunge of about 96% in its stock since it started trading toward the end of 2013. The firm’s stake in UBN, Nigeria’s sixth-biggest bank by market value is its largest investment and seen as a foothold into the continent’s most populous nation.
