Saham Finances becomes a financial powerhouse after major SGMB acquisition

Saham Finances, led by Moulay Hafid Elalamy, announced on December 3 the completion of its acquisition of a 57.67% stake in Société Générale Marocaine de Banques (SGMB) and its insurance subsidiary, La Marocaine Vie.

Valued at 8 billion MAD (approximately 745 million EUR), the transaction represents a significant milestone in Saham Finances’ strategic growth and diversification efforts.

The acquisition, based on agreements signed on April 11, 2024, grants Saham Finances full control over SGMB’s operations, customer portfolio, and existing partnerships, as well as La Marocaine Vie, previously owned by Société Générale’s insurance subsidiary, Sogécap.

This move marks a notable return to the financial sector for Elalamy, who had exited the insurance industry in 2018 after selling Saham Assurance to South African group Sanlam for over one billion USD.

The transaction was approved by Bank Al-Maghrib on November 1, 2024, following an announcement in September by Abdellatif Jouahri, Governor of Bank Al-Maghrib, that a final decision would be made before the end of the year.

The authorization, published in the Official Bulletin on November 14, facilitated the imminent transfer of control to Elalamy’s teams.

Following the acquisition, SGMB’s Supervisory Board convened to renew its governance structure, appointing Moulay Hafid Elalamy as chairman of the board, succeeding Jean-Luc Parer.

As part of this strategic move, Saham Finances, SGMB, and the bank’s investment arm, Investima, plan to launch a public offer to purchase shares in Eqdom, where SGMB currently holds a 54% stake.

The Moroccan investor is expected to pay half of the 8 billion MAD directly, with the remaining sum to be financed through bank loans under a prior agreement.

This acquisition aligns with Société Générale’s strategic roadmap unveiled in September 2023, which seeks to streamline its operations and fortify its organizational framework.

While the divestment is expected to boost Société Générale’s CET1 ratio by approximately 15 basis points in the long term, the French banking group anticipates a one-time accounting loss of around 75 million EUR in the first quarter of 2024.

Hespress sources previously highlighted that the acquisition of SG Maroc by a Moroccan investor is seen as strategically crucial for Morocco’s financial sector, aimed at expanding the Kingdom’s presence in the banking market and boosting foreign reserves amidst economic uncertainty and inflation.

The acquisition marks the second significant shakeup in Morocco’s banking sector in just over a year, following Holmarcom’s purchase of a 78.7% stake in Crédit du Maroc in December 2022.

Morgan Stanley, an American banking institution, previously estimated that Société Générale could gain between 175 and 291 basis points (1.75% to 2.91%) if the announced divestments were completed. The bank emphasized that this would correspond to a 16% increase in profits.

For Saham Finances, this acquisition marks a significant milestone in its diversification and expansion beyond its traditional core business of insurance and financial services.

For context, the French group had entered negotiations last year to divest its stakes in its branches in Burkina Faso and Mozambique, as well as projects to divest in the Czech Republic, Morocco, and Romania, as well as its UK-based private bank and its bond-specialized branch, not to mention its German branch “Hanstik Bank.”