Moroccoquotes CDG to shed financials, switch focus
Morocco - Corporate - 02-08-2010

Moroccoquotes state fund plans to cut holdings in financial companies in coming years to focus on a smaller number of core businesses in real estate and tourism, its chief executive said on 5 February 2010. Anas Alami, appointed to head CDG by King Mohammed in June 2009, said the role of the USD 15bn fund in strengthening and developing financial companies was complete. quoteThey are strong and healthy now,quote he said. quoteWe want to focus on our core business: firstly real estate and urban development and planning. This business is very profitable,quote Alami said. quoteWe also continue our development and growth in the tourism industry. It is strategic for Moroccoquotes development and a promising sector to sustain our growth.quote
The portfolio of CDG, one of the countryquotes biggest funds, includes holdings in paper making, mobile phone camera manufacturing, tourism, real estate, insurance, banking, telecoms and agrobusiness. quoteIn the past, CDG had a role in strengthening and developing some financial companies and institutions,quote Alami said. quoteCDG plans to get out from some of such institutions. It plans to reduce holdings in financial assets. It wants to lighten and reduce its exposures in some financial assets,quote he added. He would not name the companies but industry sources familiar with the issue said that holdings in mortgage lender Credit Immobilier et Hotelier, leaser Maroc Leasing firm and consumer credit retailer Sofac company were slated to be cut. They said CDG holds 45% stake in each of the 3 lenders. The sources also said the fund would trim its 40% holding in insurer Atlanta and would either sell or reduce its stakes in paper maker Medpaper and mobile phone camera maker Nemotek.
quoteThey are small holdings,quote one of the industry sources added. quoteCDG does not see such activities as part of its core business.quote Asked when CDG plans to sell holdings, Alami said: quoteWe will do it at the right time. We will choose the year, the month, the day and the hour for that. We are under no pressure. We have no pressures neither from the bourse or any other market.quote CDG plans to expand its business in retirement and pension funds management. quoteWe are a major player in retirement business. We want to expand further in that field,quote said Alami. He also said the fund was interested in tapping insurance schemes to cover risks from drought and other weather disasters as well as retirement and social security funds for independent professionals like lawyers and shop owners left out of state backed social security and healthcare schemes.

Source: Reuters