Moroccan sugar producer Cosumar has signed an agreement for Wilmar, a Singaporean agribusiness group, to exit its stake in a deal valued at more than $600 million.
The deal, announced in a press release by the Moroccan group on Saturday, stipulates the sale of Wilmar's 30.05% stake in Cosumar to Moroccan institutional investors (pension funds and insurance companies) in Cosumar.
Founded in 1928, Cosumar is listed on the Casablanca Stock Exchange. Its share price was 214 dirhams on Saturday, while the sale price has been set at 210 dirhams per share. At that price, the deal's value would exceed 5.9 billion dirhams ($608 million), according to Eqtisad AlCharq's calculations.
Cosumar is the only company in Morocco operating in sugar production, depending on local crops of cane and beet sugar, while also importing raw materials to meet the rest of its needs. Last year, it achieved profits of 825 million dirhams (85 million dollars), while its revenues exceeded 10 billion dirhams.
In return, the agreement stipulates that Cosumar sell all of its stakes in Durrah, which operates a sugar production plant in Saudi Arabia, and Wilmaco, a Moroccan company, in favor of Wilmar group according to the terms that will be submitted to the various bodies of Cosumar group.
The exit deal is expected to be completed in the last quarter of this year after fulfilling the necessary conditions, including obtaining the usual regulatory approvals, including a license from the Competition Council.
After the exit, Cosumar, based in Casablanca, expects an international sugar company to enter as a minority shareholder of capital. The identity of the new international investor was not disclosed.
