Convened on September 15 in an extraordinary general meeting, the shareholders of the Central African Stock Exchange (Bvmac) will mainly have to decide on the increase in the share capital of this limited company, which is currently 6.842 billion FCFA. This is a recommendation made by the working group set up by the Governor of the Central Bank for the operationalization of the 2nd phase of the unification project. The notice of meeting signed by Henri-Claude Oyima, the PCA of the stock market does not say more about the ins and outs of this operation. According to information from EcoMatin collected from sources familiar with the matter, the increase will relate to an amount of 3.5 billion FCFA, including 2 billion in cash contributions and 1.5 billion by offsetting a claim from the Douala Stock Exchange. (DSX). Need it be recalled, by absorbing the Douala stock exchange in 2019, Bvmac also assumed all of its liabilities, including a loan valued at 1.4 billion FCFA. The capital increase by incorporation of receivables enables the company to obtain a reduction in its debt, which indirectly enables it to enrich itself.
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With regard to new contributions (2 billion FCFA), half (1 billion) will come from issues of new shares. The number of shares as well as their cost remain an open secret for the moment. What is a given for the moment is that there will be new shareholders in the round table. These are mainly brokerage companies approved by the Central African Financial Market Supervisory Commission (Cosumaf) but which have not yet taken a stake in the capital of Bvmac. According to Cosumaf regulations, the amount to be injected per entity is 40 million FCFA, which will increase their holdings, which currently represents 34.87% of the capital against 47.15% for public companies, 7.21% for insurance companies and 10.84% for other shareholders. This operation should therefore enable them to comply with this regulatory requirement. Then comes the discussion on the allocation of the remaining shares. According to the convening notice of the GM consulted by EcoMatin, the current shareholders could be called upon to waive their preferential subscription rights. A proposal that does not seem to the taste of certain historical shareholders who wish to enlarge their shares through this operation and who could vote against.
The remaining 1 billion will be granted by the CEMAC Commission through the Community Development Fund (Fodec) in the form of a long-term loan. The maturity remains unknown but in our opinion, it will be long enough “the time that there is more generating activity which allows it to repay” informs a source close to the file.
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The idea behind the capital increase is above all to strengthen equity in order to give a boost to the process of revitalizing the financial market, the 2nd stage after the physical and institutional merger in 2019. This should be facilitated by the soon to be listed on the State Enterprises Stock Exchange. Gabon, Congo and Equatorial Guinea have each already submitted a list of 3 public companies of which they wish to sell part of the capital on the stock exchange. If Cameroon, Chad and the CAR are still lagging behind, the transmission of their lists should make it possible to invigorate the sub-regional stock market, whose illiquidity and sterility of transactions no longer need to be demonstrated. As of August 1, 2022, the contribution of the financial market to the financing of CEMAC economies represents only 1.429% of sub-regional GDP.
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