Wilmar International, a Singapore-listed agri-food major, is set to sell its minority interest in Moroccan sugar processor, Cosumar, as part of a multi-million dollar deal. The 30% stake in Cosumar will be purchased by several Moroccan investors for a price exceeding Dh5.9bn ($600m). The transaction is expected to be completed in the fourth quarter of 2023.
As a listed company on the Casablanca Stock Exchange, Cosumar is primarily engaged in sugar production through sugar cane and sugar beet processing in Morocco. Additionally, it serves as a refiner for imported sugar in the country.
In addition to the sale of its stake in Cosumar, Wilmar International is involved in two other deals in Morocco and Saudi Arabia.
Wilmar International plans to acquire a 45% stake in Wilmaco, a Moroccan business specializing in the production and processing of vegetable fats and by-products. The deal price for this transaction is set at Dh85m. As part of the acquisition, Wilmaco will become a wholly-owned subsidiary of Wilmar International and is currently constructing a factory to produce specialty fats, expected to be completed by the end of this year.
Furthermore, Wilmar International intends to acquire the 43.3% interest held by Cosumar in Durrah Advanced Development, a Saudi Arabia-based company, for SR242.8m ($64.7m). Wilmar International already owns 5% of Durrah, with the remaining 51.7% held by Saudi Arabian investors. Durrah is primarily involved in the refining and distribution of imported raw sugar.
Although the Wilmaco and Durrah transactions are subject to final terms and approval from both sets of directors, they are expected to be finalized by September, according to Wilmar International. Investors are advised to trade with caution in the company’s shares.
