The Moroccan securities and exchange watchdog, CDVM, said on Tuesday it endorsed the preliminary filing of Afriquia Gaz regarding a capital increase. Combo Photo of Aziz Akhennouch (L) and Mustapha Amhal (R)
The energy company, a subsidiary of the diversified conglomerate Akwa Group, did not unveil the exact figure of the capital increase but said it is destined to finance the acquisition sealed in April of its competitor Oismine.
The company, which is listed in Casablanca Stock Exchange, has already paid out MAD 50 million on April 28 and expect to use the proceeds of the capital increase to finance an additional MAD 1,388 million.
Afriquia SMDC and SOMEPI, two major companies specializing in the distribution of oil products, announced on March 2, 2005, the set up of a joint venture in the distribution of energy products.
The terms of the deal call for Afriquia SMDC to buy a "significant portion" of OISMINE Group, the parent company of SOMEPI. The exact sum of the deal was not disclosed, and analysts evaluated the deal at MAD 1 billion (91 million euros).
Total revenues of the newly merged company, which will have a 3,500 workforce, are expected to top MAD 12 billion (1 billion euros) through a 30% market share. The company will own 400 gas-stations, a market share of 20% from the total 2,000 that exist in Morocco.
The deal was said at the time to be facilitated by the close ties between the founding-families of the two groups, Akhannouch and Amhal.
Afriquia SMDC has two subsidiaries listed in CSE, Afriquia Gaz, and Maghreb Oxygene.
© Morocco Times 2005
