MIC Case: Apavou Reveals a Rs2.4 Billion Offer & Meetings with Padayachy

Armand Apavou, the prominent Réunionnais businessman and head of the Apavou Group, has sworn an affidavit from France as part of the investigation into an alleged misappropriation of Rs 300 million, which purportedly harmed the Mauritius Investment Corporation (MIC) while benefiting Apavou Hotels Ltd.

In this comprehensive 14-page document, Apavou accused unnamed parties of orchestrating a scheme designed to coerce him into selling his shares to the MIC, thereby enabling SUN to emerge as the majority shareholder of East Coast Hotel Investment Ltd.

He firmly asserted that at no point was he informed of, or presented with, a figure of Rs 2.1 billion.

Apavou Hotels Ltd

The businessman recounted that on 8 September 2015, Apavou Hotels Ltd and SUN established East Coast Hotel Investment Ltd, with Apavou Hotels Ltd holding a commanding 70% stake, while SUN retained the remaining 30%.

By 2017, Apavou highlighted that his group was grappling with debts owed to the State and the Mauritius Revenue Authority (MRA).

In 2022, in a bid to alleviate his financial burdens, he sought the assistance of various agents to identify potential buyers for his 70% stake.

During the same year, he tasked one of his employees, Mahen Rajkoomar, with applying for a loan from the MIC.

Rajkoomar subsequently introduced him to Verde Frontier Solutions Ltd, represented by Dirish Noonaram, to facilitate dealings with the MIC.

It was during this period that a meeting took place involving Armand Apavou, Dirish Noonaram, Mahen Rajkoomar, and Jitendra Bissessur, the then CEO of the MIC.

At this meeting, Bissessur allegedly proposed an offer of €52 million for the acquisition of the 70% stake held by the Apavou Group.

As 2023 drew to a close, Apavou claimed to have met with former Finance Minister Renganaden Padayachy on at least four occasions.

In January 2024, he received an official offer of €48 million from the MIC, culminating in a deal that was finalised on 15 May 2024.

In his affidavit, Armand Apavou contends that his 70% stake was worth significantly more than the €48 million proposed, expressing bewilderment at the freezing of Apavou Hotels Ltd’s bank accounts.

The unfolding of this saga raises pressing questions about the integrity of the processes at play and the motivations behind the actions taken against him.

Source: Defi Media