DGAP-News: ADC African Development Corporation GmbH & Co. KGaA / Key
word(s): Half Year Results
ADC African Development Corporation GmbH & Co. KGaA: ADC plans further
increase of stakes in core banking assets ++ Half-year 2012 results in
line with expectations
29.08.2012 / 10:21
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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, announces plans to further
strengthen its core banking business by increasing its stake and influence
in its key banking assets. At the same time, ADC has published its interim
results for the first half-year of 2012 which are in line with management's
expectations.
Consolidated revenues and other income for the first six months increased
by 47% to EUR 1.9 million up from EUR 1.3 million in the comparable period
last year. The group recognized non cash-relevant fair value losses of EUR
15.2 million in the first half-year 2012. Losses of EUR 10.5 million were
recognized in BancABC due to the mark to market valuation and a drop of the
BancABC share price from USD 0.95 at the end of 2011 to USD 0.55 by the end
of the second quarter. ADC has recently taken advantage of the low share
price and acquired a majority shareholding in BancABC at a price which was
calculated by taking the average share price of the company traded on the
Botswana Stock Exchange (BSE) over the last three months. With an
additional 82 million shares and a share-price of the underwriting of USD
0.60, the reduced share-price (USD 0.35 decrease relative to year-end) lead
to a lower cash investment outlay by USD 28.7 million (EUR 23.3 million).
Furthermore, ADC's Management has decided to change its approach towards
the 25.1% call option that was included in the original shareholders'
agreement between ADC and BANGE in December 2008. ADC's Management expects
to replace the option by a long-term technical assistance agreement between
ADC and BANGE which would provide an additional steady cash flow to ADC. To
follow a conservative approach, ADC Management and Supervisory Board have
decided to write off the full amount in the second quarter 2012, although
the option will remain valid. The write-off of the option results in losses
of EUR 4.6 million. In consequence, in the first six months of 2012, ADC
recorded a group net loss of EUR 19.7 million compared to a net profit of
EUR 1.2 million in the comparable period last year.
Dirk Harbecke, CEO of ADC, comments: 'ADC's strategy of becoming a
pan-African banking group has taken a giant leap forward in the past weeks
after the acquisition of a strategic stake in Union Bank of Nigeria and
becoming the majority shareholder in BancABC. The financial results show,
as we expected, non-cash relevant losses due to the drop in the share price
of BancABC, that we used to our advantage, and due to our changed approach
towards BANGE that aims to generate more cash-flow for ADC. We aim to use
the current distressed prices at BancABC to further increase our influence.
We also plan a further increase of our stake in our second key asset, Union
Bank of Nigeria. Via advisory fees combined with dividends of our core
banking assets, management intends to record positive operating cash-flows
in the future, targeting a break-even cash-flow in 2013. We are confident
this is possible on the back of the performance of our core banking
assets.'
As of 30 June 2012, ADC had shares in associated companies on the balance
sheet valued at EUR 64.8 million up by 32% from EUR 49.2 million at
year-end 2011. The group had cash and cash equivalents of EUR 45.1 million
at the end of the first half year up from 43.3 million at 31 December 2011.
The company's total equity reached EUR 70.1 million compared to EUR 88.3
million at year-end 2011. The group's balance sheet grew by 13% to EUR
116.0 million at 30 June 2012 from 103.1 million at 31 December 2011.
The Interim Report is available for download via the following link on the
ADC website:
http://www.african-development.com/en/investor-relations/investor-informat
ion/financial-reports/
About ADC
ADC African Development Corporation ('ADC') (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 is on
its way 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 international best practice processes
to increase their profitability. ADC was amongst the first international
emerging market investors to be 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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183282 29.08.2012
DGAP-News: ADC African Development Corporation GmbH & Co. KGaA: ADC plans further increase of stakes in core banking assets ++ Half-year 2012 results in line with expectations
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