Economy

Atlas Mara’s Purchase of Finance Bank Hits Stalemate

bobdiamond_1841753bThe beleaguered former banker Rajan Mahtani seems to not be having a very merry Christmas, as the sale of his business Finance Bank of Zambia Ltd to Atlas Mara for a reported $60 million plus shares has hit a stalemate and may not proceed, according to a source with inside knowledge.

Although the sale agreement was formally announced this past November 2nd, nothing has been signed yet and the transaction has not yet been executed, allegedly due to underhanded maneuvers by Mahtani to misrepresent shareholders, assets, and other critical issues before Bob Diamond, the head of Atlas Mara, the source says.

“Atlas Mara was hoping to quickly roll out the rebranding all the branch locations of Finance Bank to BancABC in January, but this will not be taking place because of the stalemate, causing frustration and impatience among the prospective buyers,” the source said.

Among the most problematic area of the stalemate was Atlas Mara’s discovery that Mahtani had not even consulted other shareholders such as Credit Suisse and Clarkwell Ltd., who are now refusing to sign off on the deal, the source alleges.

“This is the end of December and the bank was supposed to have been sold months ago, so you would expect signs of everything shutting down and transferring to the new management, but this has not been the case,” said the source. “Mahtani is still working full time and has no intention of ever handing over that bank. The purported sale was just used to raise the Bank’s reputation so that it could be bought by international investors.”

In the past, Mahtani has used similar tactics to raise interest in the bank by repeatedly announcing numerous initial public offerings (IPOs) which never materialised.

If Atlas Mara were to fail in this acquisition of Finance Bank, it would represent a debilitating setback for the banking group which has come under fire from disappointed shareholders. In an interview with Bloomberg, Zoran Milojevic, an analyst at Auerbach Grayson & Co., described Atlas Mara as “a hodge-podge mismatch of questionable investments at questionable prices.”

18 Comments

  1. CNN

    Who cares ?

  2. Eustace

    What z the meaning of this negative coverage of Mahtani & Co. From times immemorial your coverage of him has been always negative.takeovers world over takes even 6 months 2 be finalized.so time will tell

  3. ppp

    This is the site for rumors, but not truth.

    • Tag me

      Are people saving in this bank safe ? Let’s hope we do not have a repeat of meridien biao ,we are scared to the bone.

  4. loadist

    ONE DAY ZR REPORTS THAT MAHTANI IS A FOMER BANKER AND PRETENDING TO STILL OWN FINANCE BANK. THE NEXT DAY A THE SAME MANGUAMS ARE REPORTING THAT MAHTANI STILL OWNS THE BANK AND THAT THE SALE IS NOT YET COMPLETE.WHATEVR THE CASE MAYBE MAHTANI IS STILL A GOOD MAN AND STILL EMPLOYES HUNDREDS IF NOT THOUSANDS OF PEOPLE. SO PLEASE JUST LEAVE MAHTANI ALONE.

    • Trespho Chitamfya

      Knowledge is power those who do not want to know anything about Mathani and his public finance bank should not read articles related to Mathani. There those of us who have a stake (Small as it may be) in Finance bank who need to know what is going on, and where the bank is going so that we can make some informed decisions. if you have no interest in the bank then don’t waste your time reading reports on mathani from ZR.

  5. bazman

    Y talk bout other pipoz busness? mind yo own.

  6. Koswe

    This is a valued business deal which can never be concluded in weeks you dark serpents. Wait and watch how far it will go before you begin blowing trumpets of evil. Your grey matter seems to have turned black because of your ignorance and jealous. My white wife can’t understand the degree of jealousness in the black skins. It’s a dangerous DNA which runs deeper like cancer. How long will you continue persecuting Mathani you poor and smelly maggots? Get a life and leave this successful man alone. You have failed to run your own families. Hunger and disease have certainly eroded your families beyond any measure.

  7. Hiz Excellence

    For sure you are misleading the general public.last time u gave us a,long list in which u quoted that Matlani is parrading as the owner of FBZ when he sold the company,and today u are saying that the sell is not complete. Now the question is,why do u post grape vine infor? is this one of that political gimmick or otherwise?

    • T.J.Khumalo

      At least some truth in it! The Truth will set us free!

  8. Mwe bantu

    Are these reports written in a bar? Even the least knowledgeable journalist knows credit suisse has interest in finance bank. Now you guys would have us believe that a business man like Bob Diamond once head of Barclays, not Barclays Zambia but worldwide would sign a deal without ensuring everyone is on board if he wants 100 percent of the bank. The problem is you write your reports as if they are meant for villagers. I have said this before if it’s criminal pliz let us know. But what you are complaining about happens everday in thousands of businesses so what is your problem.

  9. mpupho ya munda

    Koswe kwindi always abou yo white pig twate ndwa .

  10. Stellah Janet Sinda

    I thought it was sold already and the man is gone for good?

  11. blackwadada

    The way things are being reported on this site about Finance Bank and the alleged owner leaves must to be desired. It seems that someone with connectiom to the Zambia Report has a gigantic bone to chew or has some vested iillgotten interest witth Mr Mahtani.

  12. Mike nguniland

    If you do not understand business language very well u better be quite . This is serious so pipo ought to know the truth about the Bank. Don’t u just write , ar u learning? Coz learning is a process or u doing? If u doing then u are acting. So u act reasonably.Comment

  13. ma a

    Let it be

  14. chalo bantu

    now that we brought to your attention that there is nothing you know that is going on you have now started puffing anyhow without facts!! kekekekekekeke please SAKWIBA SIKOTA you should visit CHAINAMA HOSPITAL your brains are not functioning well over Rajan Mahtani!! walapena mudala! especially that you even practice gaysim the dirty sperms goes straight into your brains kaili you are not a woman!

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