DGAP-News: ADC African Development Corporation GmbH & Co. KGaA / Key
word(s): Miscellaneous
ADC African Development Corporation GmbH & Co. KGaA: ADC enters
Nigerian financial services sector ++ ADC finalizes all-equity
recapitalization of Union Bank of Nigeria representing a USD 55
million investment
28.06.2012 / 19:09
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ADC African Development Corporation GmbH & Co. KGaA ('ADC'), ISIN
DE000A1E8NW9, a fast growing pan-African Banking Group focused on the
frontier markets of sub-Saharan Africa, is proud to announce that it has
finalized its participation as one of the leading members of an investor
consortium in an all-equity transaction to acquire a controlling stake in
Union Bank of Nigeria plc ('UBN'). ADC is taking a direct investment of USD
30 million. Additionally, ADC represents other co-investors with a volume
of USD 25 million with performance related share of profits.
This transaction follows the intervention in UBN by the Central Bank of
Nigeria in 2009 which culminated in the acquisition of certain
non-performing assets and a financial accommodation by the state-owned
Asset Management Corporation of Nigeria (AMCON) prior to the
recapitalization by new investors.
UBN, one of Nigeria's longest established commercial banks with strong
heritage and a pedigree brand, is the fifth largest bank in Nigeria with a
current distribution network of approximately 349 branches, total assets of
approximately USD 5.4 billion, gross loans of approximately USD 1.0 billion
and a deposit base of approximately USD 2.6 billion . The recapitalization
of UBN gives the consortium of investors a controlling interest in one of
Nigeria's leading banking franchises combining a 'clean book' with a stable
and low-cost depositor base and all the advantages of its strong heritage,
i.e. brand, reputation, branch footprint and banking relationships with
some of the largest and most prominent corporate names in Nigeria.
Dirk Harbecke, CEO of ADC, commented, 'This transaction is the largest
banking transaction in sub-Saharan Africa at the moment and part of ADC's
broader strategy to invest in 'local heroes' that will benefit from
increasing GDP per capita, urbanization, and consequent growth in
penetration rates for financial products and services in one of Africa's
most attractive and growing markets.'
Nigeria is Africa's most populous nation with 167 million people, it has
the fastest growing urbanization rate on the continent and is forecast to
add another 200 million citizens to its cities' population by 2050. ADC
sees urbanization as an additional growth driver for increasing the
efficiency of the banks' distribution networks.
Nigeria's fundamentals make it a strategic priority for ADC to be present
there. The country, one of the fastest growing economies in the world, has
a gross domestic product of approximately USD 250 billion and a projected
average GDP growth rate of 7% between 2012 and 2015. Nigerian banks are
highly profitable and now, post-reforms are well funded and capitalized.
Furthermore, Nigerian banks, underpinned by attractive valuations and much
improved asset quality, are at a pivotal phase in their evolution.
Penetration rates in Nigerian financial services rank among the lowest in
Africa and notably, deposit penetration rates are at a relatively low base
of 29% as a percentage of GDP. This represents significant scope for
expansion of retail banking on the liability side. Return on equity is
highly attractive for leading banks in the country and, like other banks in
sub-Saharan Africa, Nigerian banks generate most of their net interest
income on the liability side through competitive deposit funding and make
healthy fee and commission income, relative to peers in more mature
markets.
About ADC
ADC African Development Corporation (ISIN: DE000A1E8NW9; Bloomberg: AZC.GR,
www.african-development.com), a member of the Angermayer, Brumm & Lange
Group (www.abl-group.de), was established in September 2007 and aims to
become one of the leading banking groups in sub-Saharan Africa, active in
corporate and retail banking and proprietary investments. The company's
success is primarily due to its local management team, which follows
international best practice principles to further develop its operational
companies and implements conventional international processes to increase
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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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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175876 28.06.2012
DGAP-News: ADC African Development Corporation GmbH & Co. KGaA: ADC enters Nigerian financial services sector ++ ADC finalizes all-equity recapitalization of Union Bank of Nigeria representing a USD 55 million investment
| Source: EQS Group AG