ADC African Development Corporation AG
ADC’s 2012 results driven by consolidation of BancABC, increasing balance sheet to EUR 1.4 bn++ADC proposes capital increase to implement expansion plans++Strengthening of Supervisory Board by nomination of Arnold Ekpe, Verna Eggleston and Oltmann Siemens
ADC African Development Corporation GmbH & Co. KGaA / Key word(s): Final Results/Corporate Action 20.06.2013 17:11 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ADC African Development Corporation GmbH & Co. KGaA (ADC), ISIN DE000A1E8NW9, announces that the Supervisory Board approved the audited financial statements with a final consolidated net loss for the 2012 financial year of EUR -10.3 million, compared to a net profit of EUR 8.7 million in 2011, significantly reducing the net loss of EUR -25.9 million accrued for the first nine months of 2012. At year-end, ADC had assets totaling EUR 1,414.1 million, up from EUR 103.0 million at the end of 2011 mainly due to the first time consolidation of BancABC. The Annual Report 2012 and a results presentation will be made available on ADC's website: www.african-development.com/en/investor-relations/investor-information/fin ancial-reports/. In order to continue the group's growth and expansion into key markets in sub-Saharan Africa, the Supervisory Board will put forward a decision to the Annual General Meeting (AGM) on 14 August 2013 to approve a significant capital increase of up to 43,033,820 new shares. Management and Supervisory Board target a minimum price of EUR 11.00 per share. In addition, the Supervisory Board will put forward a decision to the AGM to increase the number of Supervisory Board members from three to six people. The Supervisory Board nominates Arnold Ekpe, former CEO of Ecobank Group, Verna Eggleston, of Bloomberg Philanthropies and Oltmann Siemens, former representative of the World Bank Group in Europe for election in the AGM. The invitation to the Annual General Meeting will be made available on ADC's website www.african-development.com/agm in due course. --End of the ad-hoc announcement and explanations-- In order to accelerate ADC's planned expansion into selected additional sub-Saharan African core markets and to strengthen its existing banking operations, a significant capital increase of up to 43 million new shares will be put forward for decision at the AGM. Management and Supervisory Board target a minimum price of EUR 11.00 per share. Dirk Harbecke, CEO of ADC, commented: 'ADC's vision is to strengthen its existing banking operations and expand into further attractive banking markets in the near future in order to establish a leading pan-African banking group active in key markets over the next 3 years. To finance the expansion and to become a top tier bank in terms of services and profitability, minimum scale is necessary.' In addition, the Supervisory Board will put forward the decision to the AGM to increase the number of Supervisory Board members from three to six people, to attract further highly skilled individuals to oversee the group who bring with them a wide-ranging network and the capacity to form committees in order to properly oversee a large banking balance sheet and to further accelerate ADC's expansion. The Supervisory Board nominates Arnold Ekpe, Verna Eggleston and Oltmann Siemens for election as additional Supervisory Board members in the AGM. Arnold Ekpe has over 30 years of banking experience and has held several senior positions in African and international banks. He was CEO of the Ecobank Group from 2005 to 2012 and previously from 1996 to 2001, successfully building one of the leading pan-African banks during his time in office. Prior to that, he played a leading role in building Citibank's corporate finance business in Africa and was a Managing Director at United Bank for Africa. Verna Eggleston has worked for more than three decades in social development in the USA and Africa. She was appointed twice as Commissioner of Social Development in New York, managing a budget of USD 45 billion in public funds. Verna Eggleston is currently researching and developing philanthropic investments in Africa for Bloomberg Philanthropies at the request of the founder, Michael Bloomberg. Oltmann Siemens has been active in emerging markets since 1976, working as a lawyer with DEG and continuing his career with the IFC from 1979. Mr. Siemens was the World Bank Group Representative in Germany and Special Representative of the IFC in Europe from 1997 - 2007 and has most recently worked as General Counsel a.i. of the International Fund for Agricultural Development (IFAD). He has worked in approximately 65 countries around the world over the course of his career and is familiar with the development and changes within the banking system in Africa. Alastair Newton, Chairman of the Supervisory Board of ADC explained: 'We are delighted that we have found strong partners and new potential Supervisory Board members who share our belief that there is room for an additional major force in pan-African banking and who stand ready to join us on the next stages to the realization of this vision.' Financial results: Following ADC's strategic repositioning in March 2012, to focus on establishing a pan-African banking group in sub-Saharan Africa, ADC acquired a controlling stake in BancABC on 27 July 2012 and has since consolidated BancABC into its financial statements. Due to the consolidation of the bank, ADC's profit and loss accounts and balance sheet grew significantly this year, thereby transforming it into a banking group. Net interest income of EUR 29.9 million was realized in 2012, resulting in a net interest margin of 6.7%. Net losses on financial instruments designated at fair value came in at EUR -12.7 million in 2012 compared to a gain of EUR 17.2 million in 2011 mainly due to the revaluation of BancABC before consolidation (EUR -8.1 million) and of the former portfolio company BANGE (EUR -7.3 million). Other non-interest income of EUR 22.4 million in 2012 (EUR 4.5 million in 2011) mainly consists of release of negative goodwill of EUR 17.1 million relating to acquisition and first time consolidation of BancABC. Total operating income came in at EUR 54.6 million in 2012 compared to EUR 22.2 million in 2011. Operating expenses were EUR 58.5 million in 2012 compared to EUR 13.4 million in 2011 and reflect mainly the consolidation of BancABC's business. However, due to the change of the organizational structure and the transformation to a stock corporation, ADC had additional reorganization expenses of EUR 4.3 million in 2012. As a result, consolidated loss before tax came in at EUR -8.2 million compared to a profit of EUR 8.7 million in 2011 with a net loss for the year of EUR -10.3 million in 2012. The group held EUR 183.2 million in cash and cash equivalents compared to EUR 43.3 million at year-end 2011. Net loans and advances amounted to EUR 886.6 million at year-end 2012, which reflects an increase of 41% compared to BancABC's standalone loan book of EUR 627.5 million in 2011. Investments in associates amounted to EUR 54.1 million at balance sheet date compared to EUR 49.2 million at year-end 2011. On 31 December 2012, the position includes EUR 35.0 million relating to ADC's investment in Union Global Partners Limited (UGPL) measured in accordance with the equity method compared to a purchase price of EUR 23.8 million at the beginning of the year. UGPL itself controls and fully consolidates Union Bank of Nigeria. In 2012, ADC had total assets of EUR 1,414.1 million versus EUR 103.0 million at the end of 2011. Deposits at balance sheet date came in at EUR 1,041.9 million a 37% growth compared to BancABC's standalone deposits of EUR 761.4 million at the end of 2011. Total equity increased from EUR 88.3 million at year-end 2011 to EUR 154.6 million at the end of the 2012 fiscal year. Dirk Harbecke, CEO of ADC, commented: 'The group achieved major milestones in 2012 including the market entry into Nigeria as well as the takeover and subsequent consolidation of BancABC. ADC laid important foundations to achieve its strategic targets including a streamlining of its operations. We are therefore convinced that the transformation was very positive for our shareholders and ensures a solid foundation for achieving strong profitability in the years to come.' About ADC ADC African Development Corporation (ADC) (ISIN: DE000A1E8NW9; Bloomberg: AZC.GR, www.african-development.com), is a German listed, emerging pan-African banking group. ADC has a strong footprint in Southern Africa via BancABC, a regional commercial banking platform operating in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe as well as in West Africa via Union Bank of Nigeria. Parallel to its banking operations, ADC has a private equity portfolio active in growth markets across sub-Saharan Africa. ADC follows an active management approach with a team of experts that comprise operational banking management, investment banking and merchant banking expertise. ADC optimizes its risk-return profile through a political risk insurance solution offered by the MIGA (World Bank Group). Contact: Investor Relations investor-relations@african-development.com T +49 69 719 12 80 119 20.06.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: ADC African Development Corporation GmbH & Co. KGaA Grüneburgweg 18 60322 Frankfurt/Main Germany Phone: +49 69 719 12 80 119 Fax: +49 69 719 12 80 999 E-mail: info@african-development.com Internet: www.african-development.com ISIN: DE000A1E8NW9 WKN: A1E8NW Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf End of Announcement DGAP News-Service ---------------------------------------------------------------------------
Latest News
Latest Reports
Upcoming Events
No Events found
Webcasts
No Webcasts found