PARIS, FRANCE: Societe Generale Group has signed two contracts with Saham Group with a view to sell Société Générale Marocaine de Banques including its subsidiaries and La Marocaine Vie. The two Groups also outlined the framework for a long-term business partnership.
Societe Generale’s Board of Directors, which met on 11 April 2024 under the chairmanship of Lorenzo Bini Smaghi, has approved the signing of these contracts which provide for the sale of Societe Generale Group’s shares (57.67%) in Société Générale Marocaine de Banques including its subsidiaries and the total divestment of Sogecap’s stakes in the insurance company La Marocaine Vie.
Saham Group would take over all the activities operated by these companies, as well as all client portfolios and employees.
This divestment project is part of the execution of Societe Generale’s strategic roadmap presented in September 2023, targeting a streamlined, more synergetic and efficient business model, while strengthening the Group’s capital base.
The transaction would be done at a price of EUR 745 million and will have an estimated positive effect of around 15 basis points on the Group’s CET1 ratio upon the completion of the transaction, which could take place by the end of 2024.
The announcement of this agreement is expected to have a negative accounting impact of approximately EUR -75 million on the Group’s Q1 2024 results.
Societe Generale and Saham also outlined the framework for a long-term business partnership that would allow Societe Generale’s 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 Group experts.
Slawomir Krupa, Chief Executive Officer of Societe Generale Group, comments: “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.”
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