DGAP-News: ADC African Development Corporation AG / Key word(s): Offer
ADC increases control in BancABC through mandatory offer ++ Low uptake
in-line with expectations ++ Minority shareholders consider banking
group undervalued
27.01.2014 / 18:12
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ADC African Development Corporation AG ('ADC'), ISIN DE000A1E8NW9,
announces the results of the mandatory offer, to minority shareholders of
its major banking asset ABC Holdings Limited, Botswana ('BancABC'), which
closed on 17 January 2014.
The mandatory offer was initiated as required by the Botswana Stock
Exchange (BSE) for any shareholder owning 35% or more of a listed company
in Botswana. The offer was issued at a price of USD 0.60 per share for
BancABC shareholders listed on the Zimbabwe register and the exchange rate
equivalent of BWP 5.05 for BancABC shareholders listed on the Botswana
register; the price at which ADC previously acquired a majority
shareholding.
Main co-shareholders owning 23% of the share capital of BancABC indicated
upfront that they would not accept the mandatory offer, seeing higher
potential in BancABC's future business and share price. In-line with ADC's
expectations, the uptake of the mandatory offer was limited to 10,196,469
shares, equaling 4% of the shares outstanding in BancABC.
The financing for the uptake of the mandatory offer was secured from ADC's
largest shareholder and partner, Trafigura, who will now have a direct
shareholding in BancABC. Trafigura and ADC have engaged in a voting pool
agreement.
As a result of the mandatory offer, ADC increased its controlling position
including voting pool agreements from 50.1% to 54.1%.
Dirk Harbecke, CEO of ADC commented: 'The result of the mandatory offer
proves that a significant proportion of BancABC's shareholders consider the
current share price to be undervalued. We have nevertheless made progress
by increasing our controlling position in the banking group thereby
removing any market uncertainty that existed prior to the offer. This
outcome should facilitate a share price discovery that reflects the value
of BancABC's growing presence and performance as a banking group in
Southern and Eastern Africa. We, together with the BancABC Management team
and co-shareholders, continue to work on developing our aligned strategic
vision for delivery of future growth at the bank.'
About ADC
ADC African Development Corporation AG (ADC) (ISIN: DE000A1E8NW9;
Bloomberg: AZC.GR, www.african-development.com), is a German listed,
emerging pan-African banking group. ADC has a strong footprint in Southern
Africa via BancABC, a regional commercial banking platform operating in
Botswana, Mozambique, Tanzania, Zambia and Zimbabwe as well as exposure to
West Africa via Union Bank of Nigeria. In addition to its banking
operations, ADC has a private equity portfolio active in growth markets
across sub-Saharan Africa. ADC follows an active management approach with a
team of experts that comprise operational banking management, investment
banking and merchant banking expertise. ADC optimizes its risk-return
profile through a political risk insurance solution offered by the MIGA
(World Bank Group).
Contact:
Investor Relations
investor-relations@african-development.com
T +49 69 719 12 80 119
End of Corporate News
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27.01.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: ADC African Development Corporation AG
Grüneburgweg 18
60322 Frankfurt/Main
Germany
Phone: +49 69 719 12 80 119
Fax: +49 69 719 12 80 115
E-mail: info@african-development.com
Internet: www.african-development.com
ISIN: DE000A1E8NW9
WKN: A1E8NW
Listed: Freiverkehr in Berlin, Düsseldorf; Frankfurt in Open
Market (Entry Standard)
End of News DGAP News-Service
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249518 27.01.2014
DGAP-News: ADC increases control in BancABC through mandatory offer ++ Low uptake in-line with expectations ++ Minority shareholders consider banking group undervalued
| Source: EQS Group AG