Societe Generale sells Moroccan unit to Saham Group

12th Apr 2024 09:15

(Sharecast News) - French bank Societe Generale has agreed to sell the majority of its Moroccan arm to Saham Group for €745.0m as it forges ahead with chief executive Slawomir Krupa's plan to streamline the business.

Societe General struck an agreement for the sale of its stake in Societe Generale Marocaine de Banques, its subsidiaries and stakes in insurance firm La Marocaine Vie. The deal will see Saham take over all the activities operated by these companies, as well as all client portfolios and employees.

The Paris-based lender said the sale will have an estimated positive effect of around 15 basis points on its CET1 ratio upon the completion of the transaction, which could take place by the end of 2024. However, the sale was also expected to have a negative accounting impact of approximately €75.0m on its Q1 results.

Societe Generale and Saham also outlined the framework for a long-term business partnership that would allow corporate clients operating in Morocco to engage with a local banking partner. For Saham Group, this partnership would offer its future large clients the support and financing solutions provided by Societe Generale.

Krupa said: "Societe Generale is pursuing the implementation of its strategic roadmap through this divestment project. Over the last decades, Societe Generale has built a solid and recognised bank in Morocco serving more than one million clients. We are convinced the quality of Saham Group's proposed project will offer new development prospects for these activities and will create value for customers and employees. Societe Generale is fully committed to support the transition and is pleased to enter into a long-term partnership with Saham Group."

As of 0910 BST, Society Generale shares were up 3.90% at €26.22 each.

Reporting by Iain Gilbert at Sharecast.com