BancABC shareholders to waiver employee share sale restriction

BancABC shareholders to waiver employee share sale restriction
Published: 13 May 2014
BancABC shareholders will convene early next month seeking approval to waiver a one-year restriction on the sale of employee shares that had been granted under an earlier scheme.

The move will facilitate Atlas Mara's acquisition of the pan-African banking group.

"If the Atlas Mara transaction becomes unconditional, Atlas Mara wishes to purchase the employee shares granted under this scheme. Shareholders are therefore required to waive the oneyear restriction on the sale of these shares," said BancABC in an AGM notice.

The AGM is set for June 3.

In June 2001, BancABC shareholders approved an employee share purchase scheme for the employees of the company and its subsidiaries, which was subsequently amended in May 2005.

In terms of the rules of the scheme, employees who had been employed by the company for at least six months would be able to participate in the purchase of shares offered by the company at a discount of 15 percent on the trading price.

BancABC would set aside 15 percent of the issued share capital of the company for the share purchase scheme. The company makes these shares available for purchase every two years. Shares purchased pursuant to this scheme are restricted from being sold for a period of 12 months from the date of purchase.

If shareholders approve the waiver, that will pave the way for Bob Diamond and Ashish Thakkar's Atlas Mara's acquisition of a majority stake BancABC.

Atlas Mara will inject $100 million in BancABC following conclusion of the deal.
- BH24
Tags: BancABC,


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