ADC raises BancABC stake

before raising its interest to 41,7 percent after underwriting the group’s US$50 million rights issue.

The Frankfurt Stock Exchange-listed company then increased its ABC stake when it agreed to hold shares for executive management as a financing mechanism, to take its shareholding to 50,4 percent.
“The group is very excited about this development as it will result in alignment of interests between management and ADC, now the anchor shareholder of African

Banking Corporation,” said ABC Holdings.
The regional banking group recently raised US$50 million through a rights issue for recapitalisation of its subsidiaries in Zimbabwe, Botswana, Zambia and Tanzania. The capital raising put all the subsidiaries, which trade as BancABC, either in the top tier or upper second tier of banks in the various countries in which the group operates.

Group CEO Mr Beki Moyo said the capital levels for the various banking subsidiaries would increase to US$53 million for BancABC Botswana, BancABC Zimbabwe US$52 million, BancABC Mozambique US$32 million, BancABC Zambia US$26 million and BancABC Tanzania US$20 million.
Mr Moyo said the respective operations were fully compliant with the regulatory capital requirements.

The successful cash call then created the right platform for the group to start preparing for between US$75 million and US$100 million fund raising plan.
ADC had a flirtation with another local financial institution, Premier Banking Corporation, which was later renamed Ecobank Zimbabwe after it was acquired by the Togo-incorporated Pan African Bank. ADC held a 54 percent stake in Premier.

ADC is a listed financial services group company focusing on the highly profitable banking and insurance market as well as on proprietary investments in selected frontier markets in Sub-Saharan Africa.

The group focuses on making growth capital investments available, following an active management approach and knowledge transfer delivering operational added value to its portfolio companies.