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 --------------------------------------------------------------------- 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 --------------------------------------------------------------------- 28.06.2012 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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 --------------------------------------------------------------------- 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
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