Atlanta’s merger operation with Sanad via a capital increase of the first company reserved for shareholders of the second, has just received the approval of the market authority. The finalization of this transaction remains subject to the approval of the Shareholders’ Meetings of Atlanta and Sanad to be held on September 25.
The merger of Atlanta (the Absorbing Company) and Sanad (the absorbed company) has just received the approval of the Moroccan Capital Market Authority (AMMC). The two insurance companies held their board of directors on Monday, June 1, 2020, and decided on the terms of their merger project.
This operation will be carried out on the basis of a exchange ratio of 11 Atlanta shares for 1 Sanad share.
The Atlanta capital increase reserved for Sanad shareholders will involve a total of 93.159 actions that will be issued, for a total amount of the transaction 8,263,203 DH, according to a press release from the AMMC.
The issue price is set at MAD 88.70 per share. The nominal value is 10 DH per share. The value of the contributions amounts to 2.45 billion DH
The securities exchange date is scheduled for October 5, 2020.
It should be noted that this operation is preserved for the shareholders of Sanad (excluding Atlanta).
It is Société Générale Marocaine which is appointed as a consultancy body and global coordinator.
The finalization of this transaction remains subject to the approval of the Shareholders’ Meetings of Atlanta and Sanad which, according to the press release, to be held on September 25, 2020.
The Merger will take effect retroactively on January 1, 2020 from an accounting and tax point of view.
Hereinafter the general timetable of the operation :
It should be remembered that this merger aims to create a synergy in the structures, expertise, means and resources of Atlanta and Sanad.
According to the prospectus of the operation, it falls within the continuity of the strategic reorganization and development of the Finance Division of the Holmarcom Group. The Merger will strengthen the equity of the new entity resulting from the Merger, simplify the structure of the Holmarcom group and the operation of the insurance division
It can also be explained by the complementarity of the two companies, in particular given the identical activities they carry out, as well as the expertise and experience accumulated in the insurance field.
It should be remembered that this merger operation was well received by the Casablancais stock market. The Atlanta stock has appreciated by more than 8% in the space of two trading sessions after the announcement of the transaction.
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