By CHATULA KANGALI –

ATLAS Mara Limited, a sub-Saharan African financial services group, has confirmed 100 per cent acquisition of Finance Bank Zambia (FBZ) Plc at US$60 million and $2.6 million shares.
Upon completion of the transaction, which is expected in the first quarter of 2016, the combination of FBZ with Atlas Mara’s Zambian subsidiary, African Banking Corporation Zambia Limited (BancABC Zambia) will result in the creation of Zambia’s largest bank by branch network.
Finance Bank founder, Rajan Mahtani, and Atlas Mara chief executive officer John Vitalo separately confirmed the development.
The sale price may increase to $61 million in cash and up to 5.7 million Atlas Mara shares, subject to a number of conditions,
including the local exchange rate at closing and the meeting of specific future profitability targets.
Dr Mahtani said in an interview that the entire deal was subject to selected conditions precedent and requisite regulatory approvals.
He said it was easy for Atlas Mara to buy FBZ since it was listed on the London Stock Exchange.
“The entire deal is not yet completed, there are conditions precedent and requisite regulatory approvals,” Dr Mathani said.
According to a statement issued by Atlas Mara, upon completion of the transaction, which is expected in first quarter of 2016, the combination of FBZ with Atlas Mara’s BancABC Zambia will result in the creation of Zambia’s largest bank by branch network.
The resultant bank will be the fifth largest bank by assets with combined figure of about $418 million.
Commenting on the move, Mr Vitalo said the acquisition of FBZ was another important step in the execution of Atlas Mara’s strategy to build sub-Saharan Africa’s premier financial institution.
“We are highly enthusiastic about Zambia’s long-term prospects and our ability to play a leading role in the development of financial services there.
“Creating the largest branch network in the country will facilitate Atlas Mara’s goal of increasing financial inclusion and position us to provide our customers with enhanced access to an expanded suite of innovative products, such as our recently announced co-branded fuel card with Puma Energy, our “e-voucher” program for small farmers…,” he said.
Finance Bank has been in existence in Zambia for over 30 years and has 63 branches across the country, 800 employees and assets worth $261 million as at the end of June 2015.