Issue link: https://maltatoday.uberflip.com/i/567101
maltatoday, SUNDAY, 6 SEPTEMBER 2015 News 13 Mauritius administrator wants to ensure Italian financiers and friends of former GlobalCapital chairman who want to buy his 48% shareholding in GlobalCapital plc offer fair price • 12th century castle purchased in 2013 for €8.6 million, now on sale for €6.8 million MATTHEW VELLA GLOBALCAPITAL'S intention to have Italian banker Paolo Cat- alfamo take over 48% of its shares, which are held by embattled Brit- ish-American Insurance of Mau- ritius (BAI), has attracted the attention of Mauritius's special administrator, currently oversee- ing the nationalisation of BAI. Catalfamo was formerly an hon- orary consul-general for Mauri- tius in Italy, and an acquaintance of BAI's Dawood Rawat – the former GlobalCapital chairman who has been accused in Mau- ritius of running a €960 million Ponzi scheme through one of his subsidiaries, the Bramer Banking Corporation. Bramer's 30,000 de- posit accounts were taken over by the State Bank of Mauritius. According to reports in the Mauritian press, BAI's adminis- trator, Yacoob Ramtoola, who is the chief executive officer of au- ditors BDO, has scheduled a visit to Malta for talks with the Malta Financial Services Authority over EIP's plans to acquire the BAI stake. Ramtoola was reported to have tasked himself with seeking as- surances that Catalfamo's acqui- sition will be at a fair price, due to the Italian's acquaintance with the Rawat family. LeMauricien. com, a Mauritius newspaper that has covered the BAI debacle ex- tensively, has reported a low of- fer of just €4.6 million for the BAI shareholding. Catalfamo's company EIP plc, which is registered in Malta, has elected to take over BAI's 48.5% ownership of GlobalCapital. Ra- wat resigned the GlobalCapital chairmanship since the start of investigations against him, and was replaced by Joseph R. Aqui- lina. EIP's acquisition, whose pur- chase price has not been made public, is subject to regulatory approval. EIP also intends to raise addi- tional equity "from potential new investors known to EIP" to partic- ipate in a €15 million rights issue sometime in January 2016, which is necessary for GlobalCapital to repay a €17 million bond issue. GlobalCapital's directors said they are also actively consider- ing "other financing options po- tentially available to the group" in order to honour the bond re- demption. But auditors Deloitte have ex- pressed doubts about EIP's plans to take over BAI's shareholding. "The success of these plans, which is fully dependent on fund- ing from external investors, can only be determined at a future date. These circumstances indi- cate the existence of a material uncertainty that may cast signifi- cant doubt about the company's ability to continue as a going concern," Deloitte said in Global- Capital's annual report. After reporting their first profit in seven years, of €222,671 thanks to an "aggressive transformation strategy" of cost-reduction, Glo- balCapital is now reporting that it is in advanced negotiations with potential buyers "to dispose of other excess property". Their portfolio includes the bizarre acquisition of the 12th century castle in Collalto Sabino, 50km outside of Rome, valued on the books at around €5.5 million, which is actually 25% of the in- vestment property portfolio. The baronial castle was re- ported to have been acquired by GlobalCapital in 2013 for €8.6 million, according to Italian real estate online Il Quotidiano Im- mobiliare. But property realtor Knights Frank has tagged the nine-bedroom castle – once oc- cupied by Cardinal Barberini, a nephew of Pope Urban VII – at €6.8 million. Mauritian prime minister An- erood Jugnauth has accused Da- wood Rawat of using BAI's poli- cyholders' cash to purchase the Italian residence to be used as a hotel and spa for his own family's vacation plans. mvella@mediatoday.com.mt GlobalCapital acquisition under administrator's radar Dawood Rawat, who resigned the GlobalCapital chairmanship, was accused by Mauritius prime minister Anerood Jugnauth of using the Collalto Sabino castle for his family's vacations. Rawat has been accused of running a Ponzi scheme, prompting the Mauritius government to take BAI into administration. Since BAI owns 48% of GlobalCapital plc, Rawat has had to resign. But Italian financiers EIP say they will buy his stake and raise an additional €15 million to pay off a GlobalCaptial bond The baronial castle of Collalto Sabino, in the Lazio region, is a historically important castle dating back to the 12th century. It has nine en suite bedrooms, along with a further two rooms in an adjacent apartment, a large ballroom, various reception rooms, a conference room, library, gymnasium and fitness area, complete with spa. The large parkland includes a heated swimming pool and tennis court. The castle was reportedly purchased for €8.6 million and is now on sale for €6.8 million.