Covifra is listed on the Development & Enterprise Market of the Stock Exchange of Mauritius and is the owner of the ‘Club Med’ resort located at Pointe aux Canonniers, Mauritius (the “Resort”).

In a Stock Exchange announcement on 9th August 2017, MCBG said that it had entered into an agreement to acquire Club Med’s stake in Covifra at MUR 21.34 per share, the final price being subject to foreign exchange and other completion adjustments. The Transaction, which is subject to the approval of relevant authorities and the satisfaction of certain conditions precedent, is expected to complete in the fourth quarter of 2017. Upon completion, MCBG will make a mandatory offer to minority shareholders at the final price to acquire the remaining shares in Covifra.

The Resort, which is located on 11.8 hectares of prime beachfront land and has 286 rooms, has been operated by Holiday Villages Management Services (“HVMS”), a wholly-owned subsidiary of Club Med, since 1972. Following completion of the Transaction, the Resort will continue to be leased by HVMS and operated under the ‘Club Med’ brand.

Pierre-Guy Noel, Chief Executive Officer of MCB Group, commented:

“The rationale for this transaction is to access real estate backed yielding assets and thus provide our investing customers with access to a different asset class through participation in investments seeded by the MCB Group. The acquisition of one of the prime resort sites in Mauritius is an ideal starting point and will no doubt lead to new opportunities.”

Rony Lam, Chief Executive Officer of MCB Capital Markets, commented:

“In the current low yield environment, real estate is a particularly attractive asset class. We are pleased to have advised our parent company on this landmark transaction, which puts MCB Capital Markets at the center of a new and promising business line for the group. This transaction was signed in barely four months, demonstrating our execution capability and result driven approach.”

About MCB Group
Established in 1838, MCB Group is the largest bank in Mauritius and an increasingly prominent financial institution in Africa. MCB’s rich history, commitment to its clients and innovative culture underpin its solid franchise and long track record of sustained profitability.

MCB Group is listed on the Stock Exchange of Mauritius with a market capitalisation of approximately US$2 billion. It has about 20,000 local and foreign shareholders and nearly 1 million individual and institutional customers. MCB is one of the largest employers in Mauritius with a headcount of approximately 3,000 employees.

From a dominant position in its domestic market, MCB Group launched its regional diversification strategy in the early 1990’s. Today, it is present in 10 countries including Madagascar, Maldives, Seychelles, Réunion, Mozambique and has representative offices in Johannesburg, Nairobi and Paris.

About Club Med
Club Med was founded in 1950 by Gérard Blitz and invented the all-inclusive holiday club concept, adding in activities for children with the creation of the Mini Club in 1967. Driven by its pioneering spirit, Club Med seeks out exceptional destinations and sites. Today, Club Med is the world’s leading provider of upscale, all-inclusive holiday packages with a French touch for families and working couples. Club Med operates nearly 70 resorts, of which 80% are rated 4and 5 Tridents. Present in 26 countries around the world, the Group employs more than 23,000 ‘Gentils Organisateurs’ and ‘Gentils Employés’, representing 110 nationalities.

About MCB Capital Markets
MCB Capital Markets is the investment banking arm of MCB Group, the largest banking group in Mauritius. The company provides a broad range of services under one roof, including corporate finance advice, asset management, stockbroking, private equity, structured products and registrar. Based in Mauritius, the team works with clients wishing to start or grow their operations in Africa and helps them develop solutions that meet their financing, strategic and investment objectives.