A company owned by two Italians has come forward to make a bid for the 48.5 per cent Mauritius shareholding in Global Capital, just days after the Malta Financial Services Authority suspended for 10 days the listing and trading of the shares.
EIP plc is part-owned by Paolo Catalfamo, who has a long career in asset management and private banking. Mr Catalfamo was also the honorary consul general for Mauritius in Italy.
He owns 10,000 shares in EIP, with the remaining 90,000 shares held by Andrea Zitelli.
“It is too early to say what we will do if the bid is successful. We saw the potential and made a bid, but we would clearly like to get involved in asset management, as that is my business,” Mr Catalfamo told The Business Observer. Unable to comment further on the bid, he confirmed that he planned to do “a lot of business” on the island, with one other company already set up as a special purpose vehicle.
The company was formed in Malta in May 2014 and its registered address is Ganado Advocates. Its memorandum of association lists various activities, with the main one being financing or refinancing the funding requirements of any group company. EIP has authorised share capital of €500,000.
Things unravelled when the majority shareholder in Global Capital plc, BAI Co (Mtius) Ltd, was put under the control of conservators by the authorities in Mauritius.
BAI Co. was placed under conservatorship after the banking licence of its sister company, Bramer Banking, was revoked after the Central Bank of Mauritius discovered a ‘Ponzi’ investment scheme involving $693 million at the bank. A Ponzi scheme involves returns being paid out to investors from incoming money rather than from genuine returns on investments.
Global Capital chairman and director Dawood Rawat tendered his resignation on April 3, while directors Arun Shankardass and Oumeshing Sookdawoor stepped down on April 17. Joseph Aquilina was appointed interim chairman.
Global Capital said at the time that its business and operations were totally separate and distinct from those of any of its shareholders, including BAI, and that the appointment of conservators of BAI did not relate to the business, operations or assets of the Global Capital Group.
Global Capital was the result of a merger in 2003 between Global Financial Services Group, which traces back to 1987, and British American Insurance Co., whose roots in Malta go back to 1965. Through its subsidiary companies, Global Capital principally operates in three main areas: insurance, investment and property services.
It was listed on the Malta Stock Exchange in 2001.
Global Capital last reported its finances in August, when its interim report showed a loss before taxation of €966,897, compared with a profit of €65,541 for the same period in 2013, partly because of fair value losses.
The company has been restructuring, exiting its investment and advisory business and divesting of part of its property portfolio.
Global Capital has nominal share capital of €8.7 million, with 13.2 million shares listed on the Malta Stock Exchange, held by around 1,500 shareholders, which include one of Global’s founders, Chris Pace, Aberdeen Asset Management and Sparkasse.