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Wilmar shells out US$263m for stakes in Morocco-based firm
It now owns 27.5% share.
In a release, Wilmar International Limited announced that it has acquired from Societe Nationale d’Investissement a 27.5% equity stake in Cosumar S.A., a company listed on the Casablanca Stock Exchange, for an aggregate cash consideration of MAD2.3 billion (approximately USD263 million).
Subsequent to this transaction, a block of up to 26.5% will be sold by SNI to a consortium of Moroccan institutional investors, who together with Wilmar will constitute a strategic 54% controlling block in Cosumar.
Funding for this acquisition will be from internal sources and bank borrowings. The acquisition is not expected to have a material impact on the consolidated net tangible assets and earnings per share of the Wilmar Group for the current financial year ending 31 December 2013.
Background on Cosumar
Based in Casablanca, Cosumar is the sole sugar supplier in Morocco. It is also the third largest sugar producer in Africa, with ownership of one of the largest refineries in the world, as well as seven beet and cane sugar mills situated in five regions in Morocco.
Investment Rationale
A unique asset in a stable investment climate: Morocco is an attractive investment destination with a stable and resilient economy, and a regulated sugar industry that offers steady growth.
Cosumar is a stable platform for Wilmar to expand its sugar operations in Africa. Backed by a highly regarded and professional management team and possessing a significant production capacity for sugar milling and refining of 1.6 million metric tonnes, Cosumar is well positioned to capitalize on commercial opportunities in Africa.
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