Wilmar to sell entire 30.1% stake in Moroccan sugar producer Cosumar for S$812 million
Kalpana Rashiwala
AGRIBUSINESS group Wilmar International said on Sunday (Jul 30) that it has entered into a deal with several Moroccan investors to dispose of its entire 30.1 per cent equity stake in Casablanca Stock Exchange-listed Cosumar.
The total cash consideration for the sale is about 5.96 billion Moroccan dirhams (about S$812.3 million).
The carrying value of the investment in Cosumar in Wilmar’s books was US$336.2 million as at Dec 31, 2022.
Cosumar’s main business is the production of sugar through the processing of sugar cane and sugar beet in Morocco as well as the refining of imported raw sugar and the marketing and distribution of these products.
“The completion of the Cosumar transaction, targeted to happen at the latest in the fourth quarter of 2023, is subject to certain conditions, including regulatory approvals,” Wilmar said.
As part of the agreement, Wilmar will make two acquisitions from Cosumar.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Firstly, it will buy Cosumar’s entire 45 per cent equity interest in Morocco-incorporated Wilmaco for a total cash consideration of 85.1 million Moroccan dirhams. This will result in Wilmaco becoming a wholly-owned subsidiary of Wilmar.
In the second acquisition, Wilmar will buy Cosumar’s entire 43.3 per cent equity interest in Durrah Advanced Development Company, which is incorporated in Saudi Arabia, for a total cash consideration of 242.8 million Saudi riyals (about S$86.2 million). The deal will boost Wilmar’s stake in Durrah from 5 per cent to 48.3 per cent. The balance 51.7 per cent is held by local Saudi investors.
Wilmaco’s main business is the production, development, processing, import, export and marketing of vegetable fats and their by‐products. The construction of the Wilmaco speciality fats facility is expected to be completed in Q4 2023.
Durrah’s main business is the refining of imported raw sugar, and the marketing and distribution of these products.
These two acquisitions are subject to terms to be finalised by September 2023 and to certain conditions, including approval from Cosumar’s board. “When completed, these transactions will not have a significant financial impact on Wilmar,” the Singapore Exchange mainboard-listed group said.
“As there is no certainty that the above mentioned transactions will be completed, investors are advised to trade with caution when dealing in the shares of Wilmar,” it added.
Wilmar closed one Singapore cent higher at S$3.84 last Friday.
Copyright SPH Media. All rights reserved.
