The sale of food producer Forafric Maroc is moving ahead after the buyer, the seller and Crédit Agricole du Maroc reached an agreement that ends weeks of legal uncertainty. The agreement clears the biggest obstacle to the sale of Forafric Maroc to Cap Holding, the investment company controlled by businessman Chakib Alj. The three parties have not disclosed the terms of the deal.
Cap Holding announced plans in early March to buy a 68% stake and voting rights in Forafric Maroc. The Competition Council later approved the acquisition.
The process ran into trouble in June after Crédit Agricole du Maroc won several court rulings ordering companies linked to the Forafric group to repay debts of more than MAD 190 million.
The Commercial Court of Casablanca also allowed the bank to enforce a pledge over the business assets of Tria Group so it could recover another outstanding debt.
The legal action raised doubts over whether the sale could be completed. Some of the assets included in the deal also faced the risk of enforcement proceedings while the dispute remained unresolved.
The new agreement brings together Cap Holding, seller Yariv Elbaz and Crédit Agricole du Maroc, the group’s main creditor. It now paves the way for the transaction to close.
The acquisition will strengthen Cap Holding’s presence in the grain and milling industry. The company is already active in the cereals business and will add Forafric’s flour, semolina, pasta and couscous operations to its portfolio.
Forafric is one of the country’s oldest milling groups. It owns well-known brands including Maymouna and Tria.
The deal comes as Forafric continues to deal with high debt. The company has been restructuring its business while looking for an industrial investor to secure the future of its operations in the country.
The value of the transaction has not been disclosed. Details of the agreement with Crédit Agricole du Maroc also remain confidential. However, the settlement removes the main barrier to completing a deal that has been closely watched for months.
