Atlas Mara Ltd on Wednesday revealed plans to acquire Clermont Group’s 13.4% indirect shareholding in Union Bank of Nigeria for $55million. This will increase the company’s effective interest in the bank to 44.5%.

The company intends to fund this acquisition by offering a 35% stake of its own capital to Fairfax Africa, a Toronto-based investment holding company.

According to Atlas, $100 million would be raised through the offering of new shares to Fairfax and other existing shareholders at a 10% discount and an additional $100 million through the issuing of a convertible loan to Fairfax.

“A strategic partnership with Fairfax Africa creates a strong relationship between two like-minded, long-term investors in Africa. Each is focused on capitalizing on the long-term growth potential of Africa and provides permanent capital to support growth,” Atlas Mara said.

Ever since it began operating in 2013, Union Bank has been Atlas Mara’s biggest investment in Africa. The lender is the least performing bank in Nigeria, this year. In November 2016, it announced plans to increase its capital levels as the West African economy contracted.

Atlas Mara Ltd is a financial services holding company co-founded by Bob Diamond (photo), ex-CEO of Barclays Plc. The company which has investments in banks across seven African countries lost nearly 80% of its value ever since it carried out an initial public offering in December 2013 as growth slowed and currency weakened across the continent.

Anita Fatunji