3 APRIL 2002

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Globe to seek regulatory merger approval

Globe Financial Management is to proceed with the next steps in its proposed merger with the local operations of British American Insurance by applying to the Malta Financial Services Centre and the Malta Stock Exchange for the proper regulatory approvals by the end of the week.

However, the company also announced that in light of the lengthy administrative process being undertaken by the two companies the company will be convening an extraordinary general meeting in order to seek shareholder approval in this year’s second quarter as opposed to the first, as had been announced earlier.

Following approvals by the MFSC and the MSE, Globe will announce details for the extraordinary shareholders meeting.

Earlier this year the two companies had completed a due diligence exercise to the satisfaction of both parties.

As a result of the merger, British American will be allotted ordinary shares in Globe Financial Management. However, it is estimated the it will eventually hold an amount of shares representing not less than 47 per cent and not exceeding 49.9 per cent of Globe’s issued ordinary share capital.

As part of the merger deal, British American will transfer its life insurance business, its majority shareholding in BUPA Malta and its 50 per cent stake in Britam Limited – a property holding company - to GFM.

The merger is interesting in that it will be uniting two companies acting in the financial services field, although they operate in different sectors. It is expected that the joining of their operations will see synergies capitalised upon, while opening up a capacity for a wider range of services and growth prospects in both existing and future activities.

Both companies are listed on stock exchanges, GFM on the Malta Stock Exchange and British American on the Mauritius Stock Exchange.

 



Copyright © Network Publications Malta.
Editor: Saviour Balzan
The Business Times, Network House, Vjal ir-Rihan San Gwann SGN 07, Malta
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