Former Barclays boss Bob Diamond's African banking venture fails to raise £236m for new acquisitions
Former Barclays boss Bob Diamond’s African banking venture Atlas Mara Co-Nvest is set to miss a target of raising £236million for new acquisitions.
Sources familiar with the situation said Atlas was on course to reach a total closer to £191million, the same amount raised in its first fundraising effort.
Investors are understood to have been limited by some funds being allowed only to invest a certain amount in stocks that can not be traded easily.
Failure: Bob Diamond's African banking venture Atlas Mara Co-Nvest is set to miss a target of raising £236million for new acquisitions
Shares in Atlas are suspended while it closes two transactions funded by the first cash call.
Diamond’s venture has already sealed a deal for ABC Holdings, which operates BancABC, and to acquire the controlling shareholder, ADC African Development Corporation, for about £156million.
Atlas is also buying a stake in the state-owned Development Bank of Rwanda.
After the acquisitions have closed, Atlas Mara is expected to have a market capitalisation of around £600million.
A source said ‘virtually all’ of those who invested in the first fundraising had taken part in the second round, while new money has also come in. But Atlas will still miss a £236million fundraising target.
When Atlas shares start trading, it will complete a return to the FTSE for Diamond, once described by Lord Mandelson as the ‘unacceptable face of banking’.
Diamond was forced to resign as chief executive of Barclays by regulators in the wake of the Libor interest rate-rigging scandal.
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