Mauritius Central Bank gives green signal to SBM group for restructuring
SBM is reorganizing its business under three distinct segments, namely “Bank”, “Non-Bank Financial” and “Non-Financial” investments, in line with the central bank’s recommendations to separate banking and non-banking financial activities. (Image: David Sanger)
The Bank of Mauritius (BoM) has given its approval to the second largest company listed on the stock exchange, the State Bank of Mauritius (SBM), to restructure the SBM Group.
This was the only regulatory approval that was pending for the massive restructuring exercise of Mauritius’ second largest bank, and was finally received on September 23.
It may be noted that SBM is reorganizing its business under three distinct segments, namely “Bank”, “Non-Bank Financial” and “Non-Financial” investments, in line with the central bank’s recommendations to separate banking and non-banking financial activities.
In August, SBM had submitted an application to the central bank under Section 32A of the Banking Act, and, since then, had also applied for, and received, approval from the Stock Exchange of Mauritius (SEM) for the potential listing of its shares as from 03 October, as SBM Holdings Ltd (SBMH) shares.
Following central bank approval, the group informed its shareholders that they will become shareholders of SBMH with exactly the same number of shares, the same pool of assets and liabilities, and the same underlying interest, as prevailed prior to the restructuring exercise on the appointed day, which will be published by BoM.
Post restructuring, State Bank of Mauritius Ltd will become a subsidiary of SBM Holdings Ltd, the holding company of SBM Group.
Further, since the BoM has granted an exemption under Subsection 5(A) of Section 32A of the Banking Act as part of its approval, the shares of dissenting shareholders will not be bought back by SBM Holdings Ltd.
Accordingly, shareholders were requested to sell their listing on the stock exchange, if they so wished, for which the last date was 25 September 2014.
Today is the last day to deposit shares certificates of SBM shares and, at the end of this month, all books for exchange will be closed as well as the allotment of SBMH shares and bonds will take place, and so will the crediting of CDS with the shares and bonds of the new entity, SBMH.
Finally, the first day of trading of SBM Holdings’ shares shall begin on October 3, 2014, after SBM cancels its listing on October 2, 2014.