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AfricaMoney | August 20, 2017

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CIEL to acquire 51% of BNI Madagascar’s share capital

CIEL to acquire 51% of BNI Madagascar’s share capital

Globally reputed French bank Crédit Agricole had been on the look-out to sell its stake in its financial services subsidiary BNI Madagascar for some time. (Image: African Markets)

After several months of negotiation, Indian Ocean Financial Holdings Ltd (IOFH) has finally received the green signal from the Commission de Supervision Bancaire et Financiere (CSBF) of Madagascar to buy back 51% of the share capital of BNI Madagascar.

Incidentally, IOFH is a 60% subsidiary of Mauritius-based conglomerate CIEL.

Globally reputed French bank Crédit Agricole had been on the look-out to sell its stake in its financial services subsidiary BNI Madagascar for some time.

Accordingly, it entered into an agreement to sell its stake to Indian Ocean Holdings Ltd (IOFH) – a consortium consisting of Bank One, CIEL and Hassanein Hiridjee, a Madagascar-based French businessman.

Unfortunately, this deal met resistance from the government of Madagascar, and, if it had continued unapproved till the September 5 deadline, the deal would have expired.

CIEL’s standing in the financial services sphere has been strengthened with this buy back, and it is already present as a significant stakeholder in Mauritius-based banking major Bank One, holding capital at the level of 50%.

Besides, CIEL also holds stake in the capital of an offshore company MITCO, Kibo Fund and Investment Professionals Ltd.

CIEL has declined to comment on the amount of this deal and the closing date of the transaction is expected to be April-end.

In its communiqué published on the Stock Exchange of Mauritius, the Board of CIEL has advised its shareholders and the investing public to exercise caution when dealing in the shares of CIEL and that they will be kept informed of further developments in this matter.

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