[2008-04-18]  British American Investment acquired 100% shareholding in South East Asian Bank Ltd
On 1 April, 2008, British American Investment Co. (Mtius) Ltd (“BA Investment”) acquired 100% shareholding in South East Asian Bank Ltd (“SEAB”) through its designated subsidiary, Bramer Holding Co. Ltd (“BHCL”) subject to certain conditions precedent to be fulfilled.

The consideration is for an amount of MUR 565 million payable in cash.

Based on the consideration, the transaction by BA Investment is a notifiable transaction under Rule 9 of the Securities (Disclosure Obligations Of Reporting Issuers) Rules 2007 and a substantial transaction under Chapter 13 of the Listing Rules.

(a) Reasons for the Acquisition

The acquisition of the SEAB by BA Investment is an obvious move to complete the array of financial services already offered. It is a great opportunity to tap in the banking market with the infrastructures, systems, personnel and distribution channels of SEAB. In addition, BA Investment will develop further the products and services currently offered.


(b) Basis for Determination of Price Consideration

The most appropriate method to value SEAB is the price-to-book value method, which consists of applying a suitable multiple (usually comparable to that of listed banks) to the targets book value (or NAV).

On the basis of a discounted multiple of 1.95x to SEAB’s NAV of MUR 290M as at 31 December 2007, an equity value of around MUR 565M was obtained.

(c) Completion of the transaction

The document pertaining to the substantial transaction was subject to review by the Stock Exchange of Mauritius. The transaction also required the notification of the Financial Services Commission and the shareholders of BA Investment and the issue of a Substantial Transaction Circular and the publication of its summary.


Source: Stock Exchange of Mauritius