Morocco: Sunu to block Saham from further share purchases
Source: Middle East Insurance Review | Sep 2017
Morocco-based Saham Finances said the company has acquired a total of 21.08% of Sunu Assurances, paving the way for the Saham group to become the insurance market leader in West and Central Africa, said media reports.
Sunu is a leading company in the CIMA (Interafrican Conference of Insurance Markets) zone. If Saham takes control of Sunu, it will become a major insurance player in West and Central Africa. Sunu is present in 15 African countries through 24 life and non-life insurance companies.
Saham surprised the market and stakeholders of Sunu Group when it acquired recently a 4.37% stake in the latter. It also purchased stakes of 14.03% and 2.69% from two other minority shareholders. According to Financial Afrik, the Moroccan company does not intend to stop there. Discreet contacts have been made with other shareholders about further share purchases.
Although the 21.08% of shares were acquired legally, Sunu has denounced Saham for what it calls an unfriendly takeover bid.
“Not for sale!”
Voicing opposition to Saham, Chairman of Sunu Pathe Dione told the local media that the company is not for sale. Mr Dione founded Sunu in 1998.
Sunu’s board of directors said of Saham Finances: “They are not welcome in the Sunu Group and will never be!” Indeed, the words “The Sunu Group is not for sale!” are emblazoned across the home page on the website of the company.
Mr Dione has rallied the shareholders of the remaining 78.92% stake who are bound by a pact and have reaffirmed a commitment not to sell their shares.
One reason for Sunu’s fierce opposition is that Saham and Sunu are direct competitors in at least 14 African markets. If Saham acquires sufficient shares for representation on Sunu’s board, its management would be able to learn of Sunu’s strategies and decisions. M