The Moroccan Infrastructure Fund (MIF), which is co-managed by Emerging Capital Partners (ECP) and Attijari Invest, has exited its entire position in Osead Maroc Mining (OMM).
OMM is the controlling shareholder of Compagnie Minière de Touissit (CMT), the oldest lead producer and exporter in Morocco, specialising in exploration, extraction and processing of lead-silver ore and zinc-silver ore. The exit comes as OSEAD, OMM’s parent company, increases its stake in OMM.
Since MIF’s participation in the EUR38.3m acquisition of CMT in November 2007, CMT has expanded by actively pursuing growth opportunities across Africa. During its holding period, MIF assisted CMT in protecting its revenues against metal market volatility through the development of a dynamic hedging strategy. In June 2008, CMT listed on the Casablanca Stock Exchange through the sale of 33 per cent of its capital. The IPO was a success with an oversubscription rate of 14x. The company has grown rapidly and realised a 27 per cent average annual growth in revenues since listing, reaching MAD647m and a net income of MAD362m 2011. This growth, which has continued in 2012, has allowed CMT to achieve a market capitalisation of more than EUR200m.
The full exit represents 8.4x MIF’s initial funded investment and an internal rate of return of 94 per cent.
Nayel Vidal (pictured), director at ECP, says, “Our partnership with OSEAD is a clear example of how we work with high potential, local companies such as OMM to help them achieve their next growth phase. Today, OMM’s investment is among the most profitable listed Moroccan companies and we wish the company well as it continues its regional expansion.”
Karim Fath, managing director at Attijari Invest, says: “We are pleased to announce that our investment has generated excellent returns to our investors. We want to thank the management team at OMM with whom we have worked closely to create long-term value. We are also pleased to have played a part in the ongoing development of this successful company.”
Samir Belrhandoria, managing director at MIF, says: “Since our investment in OMM in 2007, MIF has developed a strong partnership with OSEAD. In the meantime, the company delivered sustained and robust results, enabling it to craft an ambitious regional development programme. We are also very proud of the level of return achieved for our investors in this transaction.”
ECP remains committed to North Africa and holds current investments in Tunisia’s leading producer of absorbent hygiene products, Société d’Articles Hygiéniques (SAH), Algerian insurance provider Générale Assurance Méditerranéenne (GAM), construction company Entreprise Marocaine de Travaux, and equipment leasing company Somadiaz.
