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Thu 7 Apr 2011 06:24 PM

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Saudi Paper taking majority stake in Moroccan firm

Deal values Cellulose du Maroc, North Africa's biggest paper pulp manufacturer, at $64m-$78m

Saudi Paper taking majority stake in Moroccan firm
PAPER WORK: Based in Morocco, Cellulose du Maroc was created about 60 years ago and has a 125,000 tonnes annual production capacity

Saudi Paper Manufacturing Co should finalise a deal with Moroccan state-owned fund CDG Development by end-July for a majority stake in paper firm Cellulose du Maroc.

The agreement values Cellulose du Maroc, North Africa's biggest paper pulp manufacturer, at $64m-$78m, CDG Development said on Thursday.

CDG Development said it will sell part of its 62.7 percent stake in Cellulose du Maroc to SPM. Once the transaction is completed, CDG Development will retain a minority stake in Cellulose du Maroc, it said.

Arab Investment Company holds a 27.3 percent stake in Cellulose du Maroc and the remainder belongs to banks and insurance firms.

Based in Morocco's western Gharb region, Cellulose du Maroc was created about 60 years ago and has a 125,000 tonnes annual production capacity. It wholly owns Eucaforest, a firm that cultivates eucalyptus forests covering around 24,000 hectares.

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