DGAP-News: ADC African Development Corporation GmbH & Co. KGaA / Key
word(s): Disposal/Miscellaneous
ADC African Development Corporation GmbH & Co. KGaA: ADC exits
shareholding in Ecobank Zimbabwe ++ Realized profit of EUR 2.75
million ++ Participation of ADC in Brainworks Capital
09.01.2012 / 18:38
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ADC African Development Corporation (ADC), ISIN DE000A1E8NW9, a fast
growing financial services group focusing on the frontier markets of
sub-Saharan Africa, has successfully negotiated an exit for its 11.5%
shareholding in Ecobank Zimbabwe for USD 5.2 million equaling approx. EUR
4.0 million. As of 30 September 2011, ADC had valued its shareholding in
Ecobank Zimbabwe at EUR 1.25 million, so this transaction results in a
realized profit of EUR 2.75 million. Furthermore, this shows ADC's
conservative accounting policy which is guided by realistic exit scenarios.
The transaction is effective as of 28 December 2011 and will be included in
ADC's full year results 2011.
The deal is executed via a share swap. ADC swaps its shares in Ecobank for
a 28% shareholding in Brainworks Capital Management (Private) Limited, a
Zimbabwean holding focusing on banking, insurance and the mining & fuel
sectors ('Brainworks'). Brainworks already holds shares in Ecobank
Zimbabwe. After acquiring shares from ADC, Brainworks will increase its
total shareholding in Ecobank Zimbabwe to 36%.
The transaction is not only ADC's second successful exit - after the
profitable cash-exit of Banque Rwandaise de Developpement in 2009 - but
also strengthens ADC's partnership with Brainworks and consolidates ADC's
presence in Zimbabwe, one of the most upcoming and promising countries in
sub-Saharan Africa.
ADC entered the highly interesting Zimbabwean market in December 2009 as
one of the first international investors returning to the country by
purchasing a 45% shareholding in Premier Bank Zimbabwe for around EUR 3.0
million. As part of its restructuring effort, ADC, together with its local
partner Brainworks, managed to subsequently bring in Ecobank Transnational
Incorporated, one of the most successful pan-African banking groups, into
Premier Bank Zimbabwe as majority shareholder. By acquiring a 70% stake in
September 2009, Ecobank brought in additional capital and commitment for
additional funding. After Ecobank Transnational Incorporate's entry and
subsequent capital increases, ADC shareholding was diluted from 45% to
11.5%.
Dirk Harbecke, ADC's Chief Executive Officer, comments on the transaction:
'Brainworks as a local shareholder is backed by the largest Zimbabwean
pension funds, which makes Ecobank Zimbabwe compliant to indigenization
laws. Furthermore, Brainworks grants ADC the possibility to broadly benefit
in the future from the fast growing market in Zimbabwe by simultaneously
diversifying risks as Brainworks, besides banking, is also active in the
insurance industry, agriculture and mining. We are very excited about the
potential of the country and the potential of our intensified partnership
with Brainworks. We are sure that Brainworks access to highly attractive
deals will significantly contribute to ADC's success in the future. The
first joint transactions are already in preparation.'
++ About ADC ++
Belonging to the Angermayer, Brumm & Lange Group, ADC African Development
Corporation, ISIN DE000A1E8NW9 (ticker symbol: AZC.GR), was established in
September 2007 and quickly positioned itself as one of the leading
investors for banks and insurance companies in the above-average growth
markets of sub-Saharan Africa. The company's success is primarily due to
its local management team, which follows international best practice
principles to further develop banks and implements conventional
international processes to in-crease their profitability. As the second
international emerging market investor in the world, ADC was integrated
into the insurance solution offered by the Multilateral Investment
Guarantee Agency ('MIGA'), a member of the World Bank Group, primarily due
to its strong operational approach and adherence to the highest ethical
standards. This insurance offers protection against a variety of political
risks, in particular the risk of radical political change.
Contact:
Investor Relations
investor-relations@african-development.com
T +49 69 719 12 80 119
End of Corporate News
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09.01.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: ADC African Development Corporation GmbH & Co. KGaA
Grüneburgweg 18
60322 Frankfurt/Main
Germany
Phone: +49 69 719 12 80 00
Fax: +49 69 719 12 80 011
E-mail: info@african-development.com
Internet: www.african-development.com
ISIN: DE000A1E8NW9
WKN: A1E8NW
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf
End of News DGAP News-Service
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152069 09.01.2012
DGAP-News: ADC African Development Corporation GmbH & Co. KGaA: ADC exits shareholding in Ecobank Zimbabwe ++ Realized profit of EUR 2.75 million ++ Participation of ADC in Brainworks Capital
| Source: EQS Group AG