Towards Financial Freedom
Wilmar - Ventures into sugar business in Morocco HOLD
- Wilmar International announced that it has acquired a 27.5% stake in Cosumar SA, which is listed on the Casablanca Stock Exchange, for US$263mil.
- Wilmar, together with a group of Moroccan institutional investors, will hold a strategic 54% controlling block in Cosumar.
- Cosumar is the sole sugar supplier in Morocco. It has one of the largest sugar refineries in the world.
- Cosumar also has seven beet and cane sugar mills situated in five regions in Morocco. Cosumar is the third largest sugar supplier in Africa.
- We are neutral on this development.
- Earnings contribution from Cosumar is not expected to be significant. However in the longer-term, Wilmar will be able to establish its footprint and penetrate further into the African market.
- In Africa, WIlmar has joint ventures with Olam International in SIFCA's palm oil operations.
- Wilmar also owns Benso Oil Palm Plantations in Ghana. Besides this, Wilmar has about 30,000ha of plantations in Nigeria. Out of these, about 10,000ha is already planted.
- Wilmar also has two palm oil refineries and two soybean crushing facilities in Africa.
- Cosumar's contribution to Wilmar will come in the form of share of profits in associate.
- We estimate Wilmar's share of profits in Cosumar at US$17mil in FY14F based on consensus estimates for the latter's earnings.
- Wilmar's purchase consideration for Cosumar is about 15.1x of Cosumar FY14F net profit.
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on Towards Financial Freedom
Duty Free International Ltd. - A duty-free giant in the making
Created by kiasutrader | Oct 17, 2016
Cityneon Holdings - 'Avengers' showcasing in the Land Down Under
Created by kiasutrader | Jun 07, 2016
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
New Update. Discover investment communities that resonate with your ideas
Trade Confidently & Analyze Charts Conveniently - Download VCPlus IOS & Android App Now!
Latest Videos
Apps
Top Articles
1
CEO Morning Brief
Singapore Airlines Vows to Expand Capacity Despite Rising Competition
2
RHB Investment Research Reports
3
RHB Investment Research Reports
Venture Corp - Soft Demand Delaying 2H Recovery; Maintain BUY
4
5
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
