Forafric Adopts New Balance Sheet Strengthening Strategy
Forafric Global PLC (NASDAQ: AFRI) has announced a new strategic initiative focused on strengthening its balance sheet through concentration on Morocco operations and soft wheat business. The company plans to divest non-core assets, including operations outside Morocco, durum wheat businesses, and logistics activities in Morocco. This divestment program is expected to generate gross proceeds between $80-100 million, aimed at improving the company's working capital position.
Additionally, the company has appointed Khalid Assari as CEO of both Forafric Global and its wholly-owned subsidiary, Forafric Morocco, replacing Mustapha Jamaleddine who retired on December 31, 2024. Assari previously served as CEO of Forafric Morocco from 2016 to 2018 and has recent experience as an investor in Morocco's real estate and agrobusiness sectors.
Forafric Global PLC (NASDAQ: AFRI) ha annunciato una nuova iniziativa strategica focalizzata sul rafforzamento del proprio bilancio attraverso la concentrazione sulle operazioni in Marocco e sul business del grano tenero. L'azienda prevede di dismettere beni non strategici, inclusi le operazioni al di fuori del Marocco, le attività legate al grano durum e le operazioni logistiche in Marocco. Questo programma di dismissione dovrebbe generare proventi lordi compresi tra 80-100 milioni di dollari, con l'obiettivo di migliorare la posizione di capitale circolante dell'azienda.
Inoltre, l'azienda ha nominato Khalid Assari come CEO di Forafric Global e della sua controllata al 100%, Forafric Morocco, in sostituzione di Mustapha Jamaleddine che si è ritirato il 31 dicembre 2024. Assari ha precedentemente ricoperto il ruolo di CEO di Forafric Morocco dal 2016 al 2018 e ha esperienza recente come investitore nei settori immobiliare e agroalimentare in Marocco.
Forafric Global PLC (NASDAQ: AFRI) ha anunciado una nueva iniciativa estratégica enfocada en fortalecer su balance a través de la concentración en las operaciones de Marruecos y el negocio del trigo blando. La empresa planea desinvertir activos no estratégicos, incluidas las operaciones fuera de Marruecos, los negocios de trigo durum y las actividades logísticas en Marruecos. Se espera que este programa de desinversión genere ingresos brutos entre 80 y 100 millones de dólares, con el objetivo de mejorar la posición de capital de trabajo de la empresa.
Además, la empresa ha nombrado a Khalid Assari como CEO de Forafric Global y de su filial de propiedad total, Forafric Morocco, reemplazando a Mustapha Jamaleddine, quien se retiró el 31 de diciembre de 2024. Assari había sido CEO de Forafric Morocco de 2016 a 2018 y cuenta con experiencia reciente como inversionista en los sectores inmobiliario y agroindustrial de Marruecos.
포라프리크 글로벌 PLC (NASDAQ: AFRI)가 모로코의 사업 운영 및 소프트 밀 제품에 집중함으로써 재무 상태를 강화하기 위한 새로운 전략적 이니셔티브를 발표했습니다. 이 회사는 모로코 외의 사업, 두룸 밀 사업, 모로코 내 물류 활동 등 비핵심 자산을 매각할 계획입니다. 이 매각 프로그램은 8000만에서 1억 달러 사이의 총 수익을 창출할 것으로 예상되며, 회사의 운영 자본 상황을 개선하는 것을 목표로 하고 있습니다.
또한, 회사는 칼리드 아사리를 포라프리크 글로벌과 그 완전 소유 자회사인 포라프리크 모로코의 CEO로 임명하였으며, 2024년 12월 31일 은퇴한 무스타파 자말레딘의 뒤를 이었습니다. 아사리는 2016년부터 2018년까지 포라프리크 모로코의 CEO로 재직했으며 최근에는 모로코의 부동산 및 농업 비즈니스 분야에서 투자자로 활동했습니다.
Forafric Global PLC (NASDAQ: AFRI) a annoncé une nouvelle initiative stratégique axée sur le renforcement de son bilan en se concentrant sur les opérations au Maroc et l'activité du blé tendre. L'entreprise prévoit de céder des actifs non stratégiques, y compris des opérations en dehors du Maroc, des activités liées au blé dur et des activités logistiques au Maroc. Ce programme de cession devrait générer des recettes brutes comprises entre 80 et 100 millions de dollars, visant à améliorer la position de fonds de roulement de l'entreprise.
De plus, l'entreprise a nommé Khalid Assari comme PDG de Forafric Global et de sa filiale à 100 %, Forafric Morocco, remplaçant Mustapha Jamaleddine qui a pris sa retraite le 31 décembre 2024. Assari a précédemment été PDG de Forafric Morocco de 2016 à 2018 et il a récemment acquis une expérience en tant qu'investisseur dans les secteurs immobilier et agroalimentaire au Maroc.
Forafric Global PLC (NASDAQ: AFRI) hat eine neue strategische Initiative angekündigt, die sich auf die Stärkung der Bilanz durch die Konzentration auf die Operationen in Marokko und das Geschäft mit Weichweizen konzentriert. Das Unternehmen plant, nicht zum Kerngeschäft gehörende Vermögenswerte zu veräußern, darunter Operationen außerhalb Marokkos, Durumweizengeschäfte und logistische Aktivitäten in Marokko. Es wird erwartet, dass dieses Veräußern-Programm brutto Einnahmen zwischen 80 und 100 Millionen Dollar generiert, um die Liquiditätsposition des Unternehmens zu verbessern.
Darüber hinaus hat das Unternehmen Khalid Assari zum CEO von Forafric Global und seiner Tochtergesellschaft Forafric Morocco ernannt und ersetzt damit Mustapha Jamaleddine, der am 31. Dezember 2024 in den Ruhestand trat. Assari war zuvor von 2016 bis 2018 CEO von Forafric Morocco und hat kürzlich Erfahrung als Investor in den Bereichen Immobilien und Agrarwirtschaft in Marokko gesammelt.
- Expected gross proceeds of $80-100 million from asset divestment
- Strategic focus on core business in Morocco and soft wheat operations
- Anticipated improvement in working capital position
- Significant reduction in business scope through divestment of multiple operations
- Exit from international markets outside Morocco
- Discontinuation of durum wheat business line
Insights
This strategic overhaul represents a decisive move by Forafric to streamline operations and strengthen its financial position. The divestment program, targeting
The strategic focus on Morocco and soft wheat appears well-timed, considering Morocco's position as one of Africa's largest wheat importers and its growing domestic milling capacity. By divesting international operations and durum wheat businesses, Forafric is positioning itself to capture a larger share of Morocco's soft wheat market, which typically accounts for about
The appointment of Mr. Khalid Assari as CEO is particularly strategic. His dual expertise in both Forafric's operations (2016-2018) and recent experience in real estate and agribusiness investments suggests a leader well-positioned to execute this asset optimization strategy. His background could prove valuable in maximizing value from non-core asset sales and identifying strategic opportunities in the Moroccan market.
The streamlined focus on soft wheat in Morocco could yield several competitive advantages:
- Reduced operational complexity and lower working capital requirements
- Enhanced market concentration in a high-demand segment
- Improved operational efficiency through geographical focus
- Better positioning to capture local market opportunities
However, investors should monitor several key factors: the execution timeline of the asset sales, the actual proceeds achieved versus estimates, and the company's ability to maintain market share during this transition period. The success of this strategic shift will largely depend on management's ability to efficiently redeploy the proceeds and capitalize on the concentrated market focus.
Announces Enhanced Focus on Morocco and Soft Wheat through Initiatives to include Divesting Non-Core Assets
CASABLANCA, MOROCCO, Feb. 11, 2025 (GLOBE NEWSWIRE) -- Forafric Global PLC (Nasdaq: AFRI, or the “Company”), a leading vertically integrated agribusiness serving Africa, today announced that it has adopted a new balance sheet strengthening strategy with a Morocco and soft wheat focus. As part of this initiative, the Company is divesting non-core assets: assets outside of Morocco, durum wheat focused businesses and logistics activities in Morocco. The Company estimates that this divestment program will generate gross proceeds of between 80 and 100 million USD. These divestments will strengthen the Company's balance sheet and will significantly improve its working capital position.
The Company also announced that it has appointed Mr. Khalid Assari as CEO of the Company and its wholly-owned subsidiary, Forafric Morocco. Mr. Assari replaces Mr. Mustapha Jamaleddine, who retired effective December 31, 2024. From 2016 through 2018, Mr. Assari was the CEO of Forafric Morocco; most recently, he was an investor in the real estate and agrobusiness sectors in Morocco.
About Forafric
Forafric is a leading agribusiness player in Africa with activities in Morocco and Sub-Saharan Africa. It is a milling industry leader with a complete range of flour and semolina, and secondary processing products such as pasta and couscous. The Group operates 12 industrial units, and 2 logistics platforms. Forafric exports its products to more than 45 countries around the world. Forafric intends to continue expanding in Morocco.
Forward-Looking Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. None of the outcomes expressed herein are guaranteed. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our ability to obtain quality raw materials; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; and (v) difficulties in securing regulatory approval for our materials and products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 20-F. Investors are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Contact Information:
info@forafric.com
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