Shareholders approve amalgamation of CIEL Investments into Deep River Investment
Arnaud Dalais, Chairman, CIEL Group, noted that this amalgamation will give opportunities to the CIEL Group to explore new horizons. (Image: business.mega.mu)
The amalgamation of CIEL Investments Ltd (CIL) into Deep River Investment Limited (DRI), the main shareholder of CIEL group, has been approved at a special shareholder meeting held on December 30, 2013.
CIEL is the name by which the amalgamated entity will be known and listed on the Official Market of the Stock Exchange of Mauritius.
CIEL Investments Ltd (CIL) – a fellow group company of Mauritius-based clothing major CIEL Textiles – had been seen struggling financially, as revenues dipped 12% to Rs 188.27 million in the first six months ended September 2013. Losses also deepened, with an almost two-fold increase in the company’s pretax losses to Rs 112.18 million for the six months ended September 2013.
Earlier, in the interim financial report released on the Stock Exchange to communicate the CIEL group’s results for the quarter ended 30Sep13, the board of CIL had recommended to shareholders the amalgamation of the company into DRI.
Arnaud Dalais, Chairman, CIEL Group, said that further to the approval of the shareholders, all processes must be expedited in order to make this amalgamation effective on January 24, 2014.
The latter added that this amalgamation will give opportunities to the CIEL Group to explore new horizons.
The migration of the amalgamated company to the Official Market of the SEM will be complete on February 3, 2014.
However, in the interim, the stock exchange has announced that ‘dealings in the shares of CIL and DRI will be suspended from the Development & Enterprise Market (DEM) on close of business of 16 January 2014, pursuant to Trading Procedure 4.14.’
Under DEM Rules 37A.1, the admissions of DRI and CIL on the DEM will be cancelled because of the amalgamation of CIL and DRI on the Official Market.
The SEM’s official notice highlighted that shareholders of DRI and CIL wishing to continue their trade in the company’s shares as well as those who wish to trade on the first day of listing of the amalgamated company on the Official Market on February 4, 2014 must deposit their share certificates in the Central Depository and Settlement Co Ltd (CDS) by January 9, 2014.
After complying with all the conditions stated in the Listing Particulars of DRI, the new company CIEL Limited will be transferred to the Official Market of the Stock Exchange of Mauritius (SEM) with a share capital of up to 1,231,348,180 ordinary shares on February 3, 2014.
Additional development information will be given to shareholders of both DRI and CIL and to the general public, concluded the stock exchange communique.