ADC eyes US$600m expansion

Mr Alastair Newton has said.

Mr Newton said ADC’s target was to strengthen its existing banking operations, expand into farther attractive banking markets and to establish a pan-African banking group over the next two to three years.

ADC has 51 percent shareholding in regional banking group ABC Holdings, which owns BancABC.

“We are currently in confidential negotiations with key fund managers which I cannot disclose at the moment,” said Mr Newton. “We will be closely working with BancABC because we (plan to) transform it into a pan-African group in the next two to three years and also expand into new markets.”

ABCH is the biggest ADC partner in Sub-Saharan Africa. Last week, ADC chief executive said a strengthened equity position and shareholder base of ABCH was an important step to secure further access to funding.

ADC is making a mandatory offer to buy shares of all minority shareholders after it gained the majority stake following its underwriting of the regional banking group’s US$50 million rights offer last year.

The offer is meant to satisfy the regulatory requirements by the Botswana Stock Exchange which stipulates that any investor with shareholding exceeding 35 percent should make a mandatory offer to minorities.

ABCH has a primary listing on the Botswana Stock Exchange and a secondary listing on the Zimbabwe Stock Exchange. After the rights offer, ADC raised its stake in ABC to a controlling 51 percent from 26 percent.

The offer price shall be BWP5,05 per share for shares registered on the BSE, US060c per share for shares registered on the ZSE. ABCH shares rose by US10c from US60c to US70c on the ZSE yesterday.

“By engaging in pooling agreements and executing the takeover offer, we aim to firm up our control in BancABC and to realise our vision together with the strong BancABC management team,” said Mr Dirk Harbecke.

ADC’s Extraordinary General Meeting resolved the transformation of the company into a stock corporation (AG) in January 2013 to reflect the strategic enhancements in the corporate structure.

ADC has spent the last months preparing the legal documentation as well as the 2012 annual report that will be released at the beginning of June with the first time consolidation of BancABC.

In order to complete the registration of the AG in the commercial register, the company is required to renew its listing on the stock exchange, said Mr Harbecke: “In order to remain a fast moving player during our envisioned expansion in the sub-Saharan African banking market over the next years, we have decided to apply for a re-listing in the Entry Standard to increase operational flexibility and reduce costs. I would like to assure all current and future shareholders that the shares will remain in trade at all times and reporting standards will remain high.”

The company expects to list the AG in the Entry Standard in the second half of this year.