Atlas Mara, the African investment vehicle of Bob Diamond, former Barclays Bank boss, has announced that it has invested about $270 million in Union Bank of Nigeria, UBN. The move is to increase its stake in the financial institution to 30 per cent as it seeks to build the firm into Africa’s leading bank.

Diamond, co-founder and director, Atlas Mara, explained that the development is very significant for his company because it enables the firm to acquire a significant stake in a key Nigerian bank. “We at Atlas Mara are committed to building a leading sub-Saharan African financial services group and we look forward to contributing to the transformation of UBN into a Tier 1 Nigerian bank as an integral part of this strategy,” he said.

Completion of the transaction is subject to satisfaction of certain conditions, including receipt of regulatory consents. The parties are working collaboratively to obtain regulatory approval and satisfy closing conditions as promptly as possible. Atlas Mara may be required to provide Asset Management Company of Nigeria, AMCON, with an advance payment of the purchase price, provided AMCON provides security for repayment satisfactory to Atlas Mara. If the conditions to the Transaction are not satisfied or waived before December 31 2014, Atlas Mara may demand repayment of the advanced purchase price.