Casablanca – Saham Group, led by former Moroccan Minister Moulay Hafid Elalamy, has finalized a deal worth approximately $790 million to acquire shares of the “French Public Company” within its Moroccan subsidiary bank and associated branches, including the “Moroccan Life Insurance Company”. This transaction marks the former minister’s reentry into the insurance sector after selling his group’s subsidiary “Saham Insurance” to South African company “Sanlam” some years ago.

The administrative council of the French Public Company, led by Lorenzo Beni Smari, has approved the signing of new contracts with Saham Group. This allows the French entity to sell its 57.67 percent stake in the capital of the “Morocco Public Company”, along with its subsidiary branches, including its interest in the subsidiary insurance company “Moroccan Life”.

As per a statement from the French entity, Saham Group, through this new deal, will assume control over all operations of the Morocco Public Company group, its client base, and associated partnerships. This move aligns with the strategic roadmap of the French Public Company, aimed at streamlining its model and enhancing performance by boosting the group’s capital.

The completion of this deal between Saham and the French Public Company is anticipated by the end of the current year. The announcement by the French entity may impact its financial results for the first quarter of 2024. However, this agreement paves the way for a long-term commercial partnership, enabling clients of the French entity to access a local banking partner in Morocco while benefiting from support and financing solutions provided by experts from the Moroccan holding company.

Saham Group will need to apply to the Central Bank of Morocco for a banking activity license, following the regulations outlined in Law No. 103.12 concerning credit institutions and equivalent bodies. The central bank will assess and approve any new investor license applications in the banking sector.

Abdelatif Al Jawahiri, the governor of the Central Bank of Morocco, has emphasized the importance of this acquisition deal by Saham Group, subject to specific conditions and approval processes.

This deal between Saham and the French Public Company is the second of its kind in the Moroccan banking market within a 15-month period. It follows a previous instance where a Moroccan group replaced a foreign investor in the capital of a national bank.