The major owner of Nigeria’s Union Bank Plc, Atlas Mara said its investment in the mid-sized lender has grown to $442.7 million.
Atlas Mara is holding about 44% shareholding in Union Bank after several acquisitions and right issues it fully participated in.
The financial services holding group based in the United Kingdom said :
“Our investment in Union Bank of Nigeria of 44.55% is equity-accounted for in the statement of financial position as an investment in associate, with a closing balance of $442.7 million (2016: $291.4 million). The value of the asset has increased due to the completion of the additional 13.4% acquisition effective 1 October 2017, the impact of the Group’s share of the profit from UBN (based on an estimated full year profit) million and the gain on the acquisition of the 13.4% share.
We have reviewed the carrying value of the investment held in UBN from a valuation perspective as part of the year-end audit review and valuation work. We have stress-tested future expected earnings and having considered the impact of the devaluation of the Naira, coupled with potential credit shocks in the Nigerian market from lower oil prices and market-wide shortages of US Dollar liquidity, the carrying value was nonetheless substantiated, with no impairment required to the UBN carrying value for this investment at December 2017.
The value of equity accounted earnings in the statement of comprehensive income for Atlas Mara represents the estimated year-end profit and other comprehensive income for UBN, based the average results reported for the 9 months period ended 30 September 2017 on an annualised basis. The UBN results are expected to be published by 30 April 2018. We have done a comprehensive review of the factors that would impact on our results and conclude that the Atlas Mara year-end results will not be impacted in a material manner by the publication of these UBN results.”