November 6, 2018 / 4:31 PM / 10 months ago

ABC Holdings selling 24.9 pct stake in lender BancABC Botswana

GABORONE, Nov 6 (Reuters) - Pan-African financial services provider ABC Holdings, a unit of Atlas Mara, is selling 24.9 percent of its Botswana subsidiary to raise 360 million pula ($34 million) for upgrading its banking infrastructure, BancABC Botswana said on Tuesday.

BancABC Botswana - which is wholly-owned by ABC Holdings - said the parent company was selling 180 million shares in the bank at 2 pula per share, and the funds would be used to develop and enhance IT infrastructure and banking platforms across its operations in Africa.

“BancABC stands to benefit significantly given it is the largest subsidiary of ABCH. Some of the initiatives include migrating and upgrading core banking software of all banks,” BancABC said in a statement.

The shares sale opened on Tuesday and would close on Nov. 23, the bank said. Thereafter, BancABC Botswana will be listed on the Botswana Stock Exchange on Dec. 10, it added.

BancABC said the shares were being offered to selected institutional investors and that it had already received firm commitments for 148.6 million offered shares, representing 82.3 percent of the offer.

“It’s not a public offer, the sell down mainly targets private institutional investors but members of the public have an opportunity to participate in the offer through the brokers,” BancABC Botswana Managing Director Kgotso Bannalotlhe told Reuters.

BancABC has operations in Botswana, Zimbabwe, Zambia, Mozambique and Tanzania.

$1 = 10.6952 pulas Editing by Olivia Kumwenda-Mtambo; editing by David Evans

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