SGMB flies the Moroccan flag

TLong awaited after several leaks in the press, the deal is finally confirmed. The Saham group will thus take over all activities of these subsidiaries and their customer portfolios, as well as all employees of these entities. This divestment project is part of the implementation of Societe Generale’s strategic roadmap, presented in September 2023, which aims to shape a simplified, more synergistic and efficient model while strengthening the Group’s capital.

The transaction would be executed at a price of EUR 745 million and would have a positive impact on the Group’s CET1 ratio, estimated at approximately 15 basis points, upon completion of the transaction, which could take place at the end of 2024. The announcement of this agreement causes a negative accounting impact of approximately -75 MEUR** on the French group’s 1st quarter 2024 results, the latter explains in a press release.

On the day of the announcement, SG shares finished at the top of the CAC40, with investors celebrating the banking giant’s increasing tightening. The announcement was also well received on this side of the Mediterranean. SGMB, the fourth Moroccan bank in terms of asset size, generates net banking income of over 5.5 billion dirhams and has excessive equity compared to its level of activity. Observers see significant growth potential released in this configuration, in addition to the lifting of European restrictions. The SGMB’s attack force will now multiply.

Business partnership

Société Générale and Saham have also outlined a long-term commercial partnership, which will allow Société Générale corporate clients operating in Morocco to use a local banking partner. For the Saham group, this partnership would provide its future major clients with support and financing solutions offered by experts from the Société Générale group. Slawomir Krupa, Chief Executive Officer of the Société Générale group, comments: “Societe Generale continues to implement its strategic roadmap through this divestment project. Over the past decades, Société Générale has built a solid and recognized bank in Morocco that serves more than a million customers. We are convinced that the quality of the acquisition project by the Saham group will provide new development prospects for these activities and create value for customers and employees. Société Générale is fully committed to supporting the transition and is pleased to enter into a long-term partnership with the Saham Group.

The transaction is subject to customary conditions precedent, including regulatory approval. On the occasion of this acquisition project, Moulay Hafid Elalamy, President of Saham, said: “We are pleased to consider this acquisition, which is intended to become part of the very long-term assets of the Saham Group. Saham is part of the direction followed by our August King, May God help him, whose successive strategies invite Moroccan entrepreneurs to invest more in the kingdom’s economy. And to add that “this acquisition will be financed with the equity of the Saham Group, resulting from profits from investments made internationally… We had the pleasure, with Société Générale, represented by Slawomir Krupa, to outline the contours of a solid and long-term partnership between our two groups and to think calmly about the future, for SGMB, its customers and its human resources.

Please note that the completion of this acquisition project is planned by the end of 2024 and will result in the launch of a mandatory public purchase offer for the shares of Eqdom, a company listed on the Casablanca Stock Exchange. In accordance with current regulations, the operation is subject to obtaining the necessary legal permits, namely the prior agreements of Bank Al-Maghrib (BAM), the Competition Council, the Insurance and Social Security Authority (ACAPS) and the Moroccan Capital Market Authority . (AMMC).