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AfricaMoney | June 29, 2017

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ENL land and ENL Investments amalgamation approved by shareholders; opening the doors to a new era of growth and development

ENL land and ENL Investments amalgamation approved by shareholders; opening the doors to a new era of growth and development

ENL land and ENL Investments amalgamation approved by shareholders, therefore, opening the doors to a new era of growth and development. The Amalgamation will generate a new dynamism which is expected to enhance shareholder value. It will bring a diversified set of businesses under one umbrella and thus give birth to a stronger entity with broader asset of more than Rs 40 billion and activity bases and capable of generating significant operational profits and cash flows.

At the Special Meetings held on January 15, the shareholders of ENL Land and ENL Investment have given their approval for the merger of these two companies.

As from 1 February 2016, ENL Land, the acquiring company, will become the third market capitalization on the Stock Exchange of Mauritius and will be equipped with robust assets of more than Rs 40 billion, generating significant operational  income.

ENL Land’s activities encompass property development, agribusiness and investment holding and ENL Investment has an operational base generating significant operating profits and cash flows whilst holding important stakes in the Food and Allied Group, NMH and the Swan Group.

The two entities are considering an Amalgamation with the belief that untapped resources will emerge from the enlarged entity and thus provide a strong foundation for its dynamic development.

The strong balance sheet will make it easier to raise funds and build it strategic partnerships that broaden its prospects for local and regional development in its industries: hospitality, logistics, agribusiness, financial services and real estate.

Hector Espitalier-Noel, CEO of ENL Group: “The ENL Group is satisfied that the proposed merger succeeds. We are pleased with the confidence that we carry our shareholders. Fusion strengthen our growth momentum and will increase our market value and to increase the liquidity of the shares. ”

ENL Investment’s shareholders will receive 1.057 new shares for ENL Land each share ENL Investment held. The share exchange ratio was determined jointly by the independent appraisers Ernst and Young and PricewaterhouseCoopers.

The Amalgamation will generate a new dynamism which is expected to enhance shareholder value. It will bring a diversified set of businesses under one umbrella and thus give birth to a stronger entity with broader asset and activity bases and capable of generating significant operational profits and cash flows.

The merged entity will make use of its substantial resources to spur its growth both locally and internationally.

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