Harel Freres to create new holding firm

Mauritius' Harel Freres plans to restructure its group of companies by forming a new holding company to be listed under the investment segment of the Indian Ocean island nation's stock exchange, the firm said on Tuesday.

The move aims to allow the group to reflect its diversified investments away from its main operation in the sugar sector. The company is listed under the sugar segment of the bourse.

It has interests in power production, alcohol production, commercial distribution, property, construction and financial services.

"Against this background, the Board of Directors of HFL is proposing to set up a new company to hold all the companies within the Harel Frères Group and list the shares," Harel Freres said in a statement.

The new company will issue the exact number of shares and outstanding in the capital of Harel Freres and exchange them in a ratio of one to one, it added.

"There will be no dilution of the interest of the shareholders of Harel Freres following the exchange of the shares," it said.

The plans have to be approved by Harel's shareholders and market regulators.

Harel Freres swung to a pretax profit of 900,000 rupeesin the first half from a pretax loss of 70.2 million rupees a year ago, buoyed by its energy unit