India's Hinduja Group Ltd. is preparing to buy a majority stake in Mauritian lender MauBank Ltd., Bloomberg News reported Feb. 26, citing "two people with knowledge of the matter."
CEO Shridar Nagarajan told the newswire in an email that the lender was being eyed by a "strategic investor," adding that due diligence has been done and discussions have moved to a next phase. Le Defi Quotidien, a newspaper, had reported earlier in February that a stake sale was likely to be completed in the first half.
The state-backed lender was established when the government merged the ailing Mauritius Post and Cooperative Bank and parts of then-Bramer Bank, which was nationalized in 2015 following a run on deposits, the report noted.
One source told Bloomberg that Hinduja could acquire up to 75% of the bank. The conglomerate's other banking holdings include Swiss-based Hinduja Bank (Schweiz) AG.