Strategic financing: MCB leads UBP’s major acquisition in the Indian Ocean

Background

The United Basalt Products Limited (UBP), a key player in the Mauritian construction industry, has taken a significant step towards regional expansion with the acquisition of ten construction material companies of Leandri Group from Reunion Island. This strategic move, supported by a syndicated loan was underwritten and led by MCB, emphasizing UBP's ambition to become a major regional player.

MCB’s Strategic Role

MCB’s role as the lead arranger was pivotal in the successful structuring of this complex transaction. The deal saw participation from six Mauritian banking institutions, highlighting the robust interest and confidence in UBP’s growth potential. The structuring of this syndicated loan was managed by the Mauritian and Regional Corporates (MRC) team in collaboration with the Financial Institution & Syndication (FIS) and Credit Analysis and Structuring (CAS) teams at MCB. This transaction underscores the enhanced expertise of MCB’s teams in supporting corporate clients in Mauritius who seek to expand their activities in the region.

Dave Khelawon, Team Leader of Mauritian and Regional Corporates at MCB, who led the deal, added, “Our collaboration across various specialized teams within MCB ensured that we could meet the stringent requirements and tight timelines of this transaction. This successful deal is a testament of our commitment to provide comprehensive financial solutions that drive regional growth for our clients whilst showcasing its capabilities to structure and syndicate major deals in the Mauritian International Financial Centre.”

Results

This acquisition led to the creation of Bazalt Réunion, which includes 10 companies divided into two segments of the construction sector. The first segment includes three industrial companies that manufacture products similar to those of UBP and Premix, such as ready-mix concrete, aggregates, concrete blocks, and various precast concrete products, as well as a subsidiary importing cement in "big bags." These companies are Préfabéton and its subsidiary Prefinvest, Sigemat and its subsidiary Siginvest, Soreco, and Incudine. The second segment comprises four commercial companies that primarily operate in the "VRD" (Roads and Miscellaneous Networks) market. The flagship company in this segment is Anzemberg, which has three subsidiaries: ALD, ACM, and Dimatechniques. By facilitating this deal, MCB has not only demonstrated its capability in executing large-scale financial transactions but also reinforced its commitment to supporting the growth ambitions of its clients. UBP’s enhanced regional presence and production capacity position it strongly for future growth, underpinned by the solid financial backing and expertise of MCB.

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