State to acquire effective full ownership of Air Mauritius

The Mauritian government’s Airport Holdings Ltd – the majority shareholder of Air Mauritius – is to acquire all voting shares in the airline at a price of MUR5.80 rupees (USD0.13) per share under the terms of a mandatory offer triggered by Stock Exchange of Mauritius (SEM) rules, the airline announced.

This followed Airport Holdings acquiring 9,429,896 shares in Air Mauritius Holding Ltd from the State Investment Corporation Limited and Rogers and Company Limited on October 13. Stock Exchange of Mauritius rules dictate that anyone acquiring effective control of a company must make a mandatory offer for all voting shares not already held.

In a statement to the SEM, Air Mauritius’ Board said it was notified of Airport Holdings’ intentions on October 15.

The airline said Airport Holdings had confirmed that it had sufficient financial resources to make the mandatory offer, which was not subject to any condition.

“There exists no agreement between Airport Holdings Ltd on the one hand and Air Mauritius Limited on the other hand in relation to the relevant shares. The mandatory offer to shareholders of Air Mauritius Limited will be made as soon as practicable,” the statement said.

According to the stock exchange rules, Airport Holdings must submit an offer document to the shareholders of Air Mauritius. The airline’s board will submit a formal reply to its shareholders to enable them to reach an informed decision about 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.