Anne Gey Bekale’s firm announced on August 31 that BGFIBank Gabon plans to absorb its subsidiary Loxia, a 2nd category microfinance institution. With the announced “death” of this structure created in 2009 to boost financial inclusion in Gabon, a page of microfinance in the country is closing.
A 2nd category microfinance institution with a storefront in Gabon, Loxia will merge into its parent company. In a press release published in The union On August 31, Anne Gey Bekale’s research firm announced that BGFIBank Gabon plans to merge with its subsidiary Loxia.
When two companies come together to form a single entity, it is called merger absorption. At the end of the operation, the absorbed company ceases to exist while the absorbing company is maintained. This type of operation can mobilize considerable financial resources. “The total value of the assets contributed is estimated at more than 9.4 billion CFA francs, corresponding to the sum of the goods contributed; the total value of the liabilities transmitted is estimated at more than 8.3 billion CFA francs”explained Anne Gey Bekale.
Furthermore, she said, “the merger-absorption of Loxia, the absorbed company, by BGFIBank Gabon, the absorbing company, will not entail any capital increase in kind and/or stipulations of particular advantages”. Founded in 2009, Loxia had set itself the task of being a major player in financial inclusion in the country, by offering local financial products and services, accessible to all populations with low incomes or excluded from the traditional banking system. . If nothing has filtered on the reasons for this merger-absorption, it is clearly a page of microfinance in Gabon that is closing.