IFC snaps about 10.3% stake in ABC Holdings

Published: 10 June 2013

THE International Finance Corporation has snapped about 10,3 percent stake in ABC Holdings after exercising an option to convert a 78 million pula (US$9,2 million) loan to the banking group into equity.

Conversion of the loan into equity in ABC takes the international lender's shareholding in the banking group around 20 percent since IFC held a 9,27 percent shareholding in ABC Holdings as of March 2012.

"ABC Holdings announces that, by resolution of the board of directors on May 6, 2013, it has allotted 24 080 230 ordinary shares in company in satisfaction of the conversion of the loan BWP78 019 945,66 including accrued interest.

"Each new ordinary share will have the same rights as to distribution of profits and assets and rank "pari passu" with each existing fully paid ordinary share in the company," ABC said.

The regional banking group said the conversion of the loan to ordinary shares in the company was the result of a convertible loan agreement with IFC signed in August 2007.

As per the agreement, the loan was converted at BWP3,24 per share. ABC said assuming the conversion had taken place on December 31, 2012 attributable earnings would remain unchanged at BWP132, 7 million, but the net asset value would change from BWP1 13 044 000 to BWP1 215 064 000.

The weighted average number shares would remain 184 194 353, but the total number of shares in issue would increase from 232 805 464 to 256 886 694 ordinary shares.

ABC basic earnings per shares would remain at 0,72 pula while the net asset value per share would decline to BWP4,73 from BWP4,88 pot the conversion of the loan into equity.

ABC has its primary listing on the Botswana Stock Exchange and subsidiaries in Zimbabwe, Zambia, Tanzania and Mozambique.
- herald