Mr. Salaheddine MEZOUAR, Minister of Economy and Finance, signed an agreement protocol with Mr. Mostafa TERRAB, Chairman and Managing Director of the OCP, and Mr. Mohammed BENCHAABOUN, Chairman and Managing Director of the BCP, to confirm the strategic partnership between the two public groups. The signing ceremony was attended by Mrs. Amina BENKHADRA, Minister of Energy, Mining, Water and the Environment.
The agreement comes at a time when the two groups have adopted a determined strategy to consolidate their standing on their respective markets, and to secure their long-term development, as well as their contribution to national prosperity.
Having transformed into a public limited company, the OCP achieved a record operational performance with a MD 55 billion turnover in 2008. These achievements enabled it to further strengthen the structure of its balance sheet, to finance the outsourcing of its internal retirement pension fund for an amount of MD 28 billion, and to proceed with investments in excess of MD 7 billion. Today the OCP enjoys a solid financial situation, enabling it to seek alliances with other renowned entities.
Over the coming years, the ambitious investment plan, coupled with several operational, commercial, and organisational initiatives, will be part of the OCP strategy designed primarily to strengthen the group`s leadership worldwide.
The main facets of the strategy include better processing of raw phosphate, from 48% to 70%, doubling the rock`s production capacity, bringing it up to 50 million tons per year, and improving the commercialisation of the product by making the Jorf Lasfar site an international phosphate chemistry hub (Jorf Lasfar Hub).
In this context and in view of the OCP`s development potential, the BCP, as a leading public investor, decided to acquire a minority stake in the OCP capital, with a view to offering sustainable support to the group for its industrial development, and for the promotion of its partnership policy.
The deal was framed by the Ministry of Economy and Finance under Bill n° 46-07 regarding the legal transformation of the OCP into a public limited company, enacted on February 26th 2008, and providing for the opening of the group`s capital while preserving the state`s majority stake.
The MD 5 billion investment will amount to an increase of OCP`s capital whereby the BCP will hold a 5.88% stake, calculated on the basis of the OCP company value of MD 100 billion. The BCP will have one seat on the Board of Directors and a representative on each major committee.
By the same token, the OCP will buy stakes in the capital of the BCP, amounting to a MD 1 billion investment, to underscore both groups` determination to promote strong synergy for their economic activities and a long-term strategic partnership. This will involve a 6.6% increase of BCP`s capital. The OCP will also have one seat on the BCP Board of Directors and representatives on all major committees.
These deals are subject to approval by social committees, according to current legislation, and this has already been granted in some cases.
This crucial phase will enhance the financial standing of the OCP and boost its prominence on the world market. Hence the OCP will be in a position to speed up the implementation of its industrial strategy, to conquer new market shares, and to consolidate its leadership worldwide.
For the BCP, the partnership is part of the bank`s strategy of external growth and of support provided to groups operating internationally, thus confirming its renown as an operator in the world of finance and investment.