Business
ABC Banking to undergo reorganisation, to issue Rs700M Subordinated Debt
ABC Banking Corporation Ltd. has announced a corporate reorganisation plan to separate its banking and non-banking activities.
The plan, approved by the Board of Directors on November 28, 2023, involves the creation of a new entity called ABCB Holdings Ltd. to act as the holding company of ABC Banking.
The non-banking assets of the company will be segregated, and a court-sanctioned scheme of arrangement will be implemented under the Companies Act 2001.
Shareholders of ABC Banking will exchange their ordinary shares for new shares in ABCB Holdings Ltd. on a 1:1 ratio, and the Bank’s property portfolio will be transferred to a wholly owned subsidiary of ABCB Holdings Ltd.
The reorganisation is pending approval from shareholders, the Bank of Mauritius, and the Supreme Court.
Meanwhile, ABC Banking Corporation Ltd has received approval from its Board of Directors to issue a subordinated debt of up to Rs700 million through a public offer.
The issuance will consist of fixed rate notes and/or floating rate notes, with a minimum aggregate nominal amount of Rs500million and a potential oversubscription amount of Rs200million.
The Notes will be unsecured and subordinated, and the Company plans to seek listing on the Official Market of The Stock Exchange of Mauritius Ltd.
The net proceeds will be used for general corporate purposes and subject to approval from the Bank of Mauritius.
Source: Stock Exchange of Mauritius