Atlas Mara has disposed of the 10.1% stake in Brainworks Capital Management that it owns through ADC Financial Services & Corporate Development (ADC FS) in a deal that values the Zimbabwean private equity and advisory firm at almost $90 million. The sale netted Atlas Mara $8.72 million, a price that represents a multiple of 1.4 times Brainworks’ reported 2014 book value.
ADC FS is selling its Brainworks stake to an undisclosed acquirer in exchange for approximately $3.1 million in cash and 665,195 Atlas Mara ordinary shares. The deal gives Atlas Mara an implied per share price of $8.46, which was determined on the 90-day volume weighted average price as at the initial date transaction terms had been agreed by both parties.
The transaction, which is expected to be completed by June 20th 2015 subject to certain closing conditions, is consistent with Atlas Mara’s strategy of shedding non-core assets from its acquisition of ADC FS in order to focus on its sub-Saharan banking operations.