Wilmar International F34 has agreed to dispose of its 30.05% stake in Cosumar S.A. for a cash consideration of 5.96 billion Moroccan dirham (MAD), which translates to about $813.2 million.
On July 30, the group announced that it has entered into an agreement to dispose of its stake to “several Moroccan investors”.
Cosumar is a company that was incorporated in Morocco and listed on the Casablanca Stock Exchange. The company’s principal business is the production of sugar through the processing of sugar cane and sugar beet in Morocco. It also refines imported raw sugar and does the marketing and distribution of these products.
The completion of the sale is slated to take place in the fourth quarter of 2023 at the latest.
At the same time, Wilmar has, within the same agreement, agreed to acquire Cosumer’s entire 45% stake in for MAD 85.1 million. The transaction will result in Wilmaco becoming Wilmar’s wholly-owned subsidiary. Wilmaco was incorporated in Morocco and is in the business of producing, developing and processing vegetable fat and their by-products. The company also imports, exports and markets these products. The construction of the Wilmaco specialty fats facility in Morocco is ongoing and is expected to be completed in the fourth quarter of 2023.
Wilmar has also agreed to acquire Cosumer’s entire 43.275% interest in Durrah Advanced Development Company for a consideration of 242.8 million Saudi riyal (SAR) or $86.0 million. The move will see Wilmar upping its current stake of 5% to 48.275% upon the completion of the transaction. The balance stake of 51.725% interest in Durrah is held by local Saudi investors.
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Durrah Advanced Development is a Saudi Arabia-incorporated company which refines imported raw sugar. The company also markets and distributes these products.
The transaction for Wilmaco and Durrah Advanced Development is not expected to have a significant financial impact on Wilmar.
Shares in Wilmar closed 1 cent higher or 0.26% up at $3.84 on July 28.
