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Bramer Banking Corp. is set to become the seventh-biggest company on the Stock Exchange of Mauritius by market value after the merger between Mauritius Leasing Co. Ltd (MLC) and Bramer Holding Co. Ltd.
The reference price will be set at 9.50 rupees per share on May 9, Ashraf Esmael, chief executive officer of Mauritius Leasing, said in a phone interview from Port Louis, the capital, today. “A shareholder of Bramer Banking Corp has undertaken to make available 50,000 shares at that indicative price,” he said.
Mauritius Leasing shareholders approved the merger today, according to an e-mailed statement. The deal will be effective as of May 2. Trading in the leasing company’s shares was suspended on March 28, with a closing price of 10.50 rupees.
The merger will allow Bramer Banking to better compete with Mauritius Commercial Bank and State Bank of Mauritius Ltd., the Indian Ocean island nation’s two largest lenders, who currently have a 40 percent weighting on the SEMDEX (SEMDEX) Index. Bramer Banking will list about 9 million shares as from May 9, representing an initial market value of 8.56 billion rupees ($294 milllion). That would make it the seventh-largest company on the bourse, according to today’s data.
The proposed introductory price of 9.50 rupees per share should “not be the sole criterion in guiding the future investment decisions” of shareholders following the listing, Bramer Banking commented in a statement on the bourse website today
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