AHL makes mandatory offer for Air Mauritius shares

Mauritius’s state-controlled Airport Holdings Ltd (AHL) – the largest shareholder of Air Mauritius (MK, Mauritius) – has announced that, as required by Stock Exchange of Mauritius (SEM) takeover rules, a mandatory offer has been made to acquire all of the flag carrier’s shares at a price of MUR5.80 rupees (USD0.13) per share.

The offer, which opened on November 3, will close on November 22 as per approval received to keep the offer open for 20 business days instead of the 35 days stipulated under takeover rules.

Shares will be transferred on November 24, and AHL will pay the purchase price by November 29, 2021.

As reported, SEM rules triggered the mandatory offer after AHL acquired 9,429,896 shares in Air Mauritius Holding Ltd from the State Investment Corporation Limited and Rogers and Company Limited on October 13, 2021. Following this transaction, the government, AHL, Air Mauritius Holding Ltd, Airports of Mauritius Co Ltd, and the State Investment Corporation Limited together have now exceeded a 50% shareholding in Air Mauritius Ltd.

SEM rules dictate that anyone acquiring effective control of a company must make a mandatory offer for all voting shares not previously held.

The Board of AHL confirmed that it has sufficient financial resources to satisfy the acceptance of the offer.

SBM Capital markets Ltd has been appointed as the investment dealer for the mandatory offer.

Air Mauritius last month exited voluntary administration following a MUR12 billion rupee (USD280million) government bailout in the shape of a loan arrangement to be provided through the Mauritius Investment Corporation, belonging to the state-owned Bank of Mauritius. The airline resumed commercial passenger and cargo flights to a limited number of destinations on October 1, 2021.