Sammaan Capital board clears scheme to absorb Samman Finserv's NBFC

Board-approved restructuring will transfer Samman Finserv's NBFC business to Sammaan Capital and surrender the licence, aiming to consolidate lending and meet single-NBFC norms

Sammaan Capital, the parent company of Sammaan Finserve, approved a scheme to merge the latter into the parent company, Sammaan Capital said in an exchange filing on Wednesday. The scheme, approved by the board on December 31, is subject to regulatory, statutory and shareholder approvals.

 

What will happen to Samman Finserv’s NBFC business and licence? 

Under the proposed arrangement, Samman Finserv’s non-banking financial company (NBFC) business will be demerged and transferred to Sammaan Capital on a going-concern basis, following which the company will surrender its NBFC licence. The restructuring aims to consolidate lending operations within a single entity, improve governance and operational clarity, and ensure compliance with regulations that require only one NBFC licence within the group.

 

How is the merger scheme linked to the IHC investment agreement? 

Previously, Sammaan Capital entered into a $1-billion investment agreement with Avenir Investment RSC, an entity owned by International Holding Company (IHC) of Abu Dhabi. As part of the agreement, it will acquire a controlling 41.2 per cent stake and become the promoter post completion. “Through this scheme, the regulatory compliance that no other entity in the group holds an NBFC licence will be fulfilled, thereby supporting the regulatory approval process for IHC’s investment into the company,” Sammaan Capital said.

 

What is Sammaan Capital’s strategy after consolidation and capital infusion? 

Sammaan Capital said the consolidation will allow it to offer a full suite of mortgage-backed loans and, following the capital infusion, evolve into a multi-product NBFC. The company also plans to leverage IHC’s expertise to expand into non-lending financial services and fintech businesses, while continuing to scale its alternative investment fund platform focused on private and structured credit.