Atlas Mara Appoints Bob Diamond as Interim Chairman -- Update

By Margot Patrick

LONDON--Atlas Mara Ltd. (ATMA.LN) on Tuesday said Bob Diamond will be its interim chairman, as the troubled African banking group looks to get its growth strategy back on track.

Mr. Diamond, the former chief executive of Barclays PLC (BCS) who co-founded Atlas Mara three years ago, will replace Arnold Ekpe when he leaves in December to focus on other interests. The assignment will be for a limited period while a new chairman is found, the company said.

Mr. Diamond co-founded Atlas Mara in 2013 with entrepreneur Ashish Thakkar and raised $625 million for it to buy banks in Africa. But after acquisitions in countries including Botswana, Zimbabwe and Mozambique, the group's ambitions to create a sizeable and consolidated bank were hindered by a commodities crash and weak dollar.

Atlas Mara shares traded in London Tuesday at $3.40 each, down by around two-thirds from their listing price three years ago.

In August, Atlas Mara said it would cut costs to counter the weakness and improve earnings, including by stripping out a layer of management at its BancABC unit and reducing headcount in its Dubai headquarters.

On Tuesday, Atlas Mara said it saw continued "positive operational momentum" in the third quarter.

Mr. Diamond resigned from Barclays in 2012 in an interest rate rigging scandal. Since then, he has also started a private equity firm.

(Tapan Panchal contributed to this article.)

-Write to Margot Patrick at [e-mail]

(END) Dow Jones Newswires

October 11, 2016 05:50 ET (09:50 GMT)

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