Rabat – Moroccan government sources have denied reports that The Cherifian Office of Phosphates (OCP) is considering foreign shareholders.
Last month, a report by Bloomberg Business, citing two anonymous sources, stated that Morocco’s OCP is considering bringing in investors such as sovereign wealth funds as a prelude to an initial public offering within two to three years.
Meanwhile, Hespress quoted Moroccan government sources as saying that any capital investment of the company with foreign investors is not on table.
“The Moroccan government which maintains major control of the company [95 percent] did not take such a decision and is not even considering it,” the source added.
“These are just false media speculations,” the same source said, adding that “the state is unlikely to consider foreign shareholders.”
“Such a heavy decision will only be made under exceptional circumstances,” concluded the source.
Earlier this year, OCP Chief Executive Officer Mostafa Terrab said in an interview that the state-owned company is ready to consider all possibilities and a share offering is not “taboo.”
However he admitted that the government has the final say.
Founded in 1920, OCP is 95 percent owned by the Moroccan government with the remainder held by local lender Banque Centrale Populaire. OCP is in the midst of an expansion of more than US $ 20 billion to double mineral output and triple fertilizer production, as well as increase domestic demand.
The company will assemble African producers of raw materials and commodities, and circumvent the historical presence of Western companies in the added value chain.
Phosphates from Morocco, along with resources from other African countries, could produce fertilizers at a “more affordable price for local farmers.”
Last August, OCP reported revenues for the first half of 2015 totaling US$2.5 billion, with second-quarter adjusted earnings pegged at US $ 479 million. The company offset a temporary decline in Brazilian imports by almost doubling its sales in Africa.
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