CMGP Group Strengthens Its Sustainable Growth Strategy with the Acquisition of an Additional 40% Stake in Agrosem

CMGP Group announces the successful completion of the acquisition of an additional 40% stake in Agrofourniture Semence (Agrosem) from its historical shareholder, Mr Jamal BENSSY. This transaction increases CMGP Group’s total ownership to 70% of Agrosem’s share capital, following an initial minority stake of 30% acquired at the beginning of 2024.

This step-up to a controlling interest in Agrosem represents a key strategic milestone for CMGP Group and marks the beginning of a new development phase in the high-value seed segment — a critical market for improving yields and modernising Moroccan agriculture. Agrosem brings strong complementarities to the existing portfolio, enriching the product offering and providing access to an extensive customer base as well as a diversified, top-tier supplier network.

Statement from Mr Youssef MOAMAH, Chairman and Chief Executive Officer of CMGP Group:

“Taking majority control of Agrosem reflects our unwavering commitment to building an integrated, high-performance and sustainable model that supports a modern and competitive agricultural sector. The seed market lies at the heart of yield and resilience challenges for Moroccan farmers. By strengthening our position in this segment, we are enhancing our product range, creating new commercial synergies and gaining access to an expanded network of partners and customers.”

Interest and Advantages for Foreign Investors and Institutions in Moroccan Stocks – Focus on CMGP Group

CMGP Group (Casablanca ticker: CMP) is one of the fastest-growing and most diversified agribusiness platforms listed on the Casablanca Stock Exchange, with exposure across pesticides & crop protection (via its historical subsidiary Colorado), fertilisers, and now — via the Agrosem transaction — certified seeds and agricultural inputs distribution.

Key attractions for international investors and institutional allocators include:

•  Strategic Consolidation in a High-Growth, Defensive Sector: Agriculture accounts for ~14% of Moroccan GDP and employs nearly 40% of the workforce. Seeds and modern inputs are central to the government’s “Generation Green 2020-2030” strategy, which targets a doubling of agricultural productivity and exports. CMGP is positioning itself as a national champion in this structural growth story.

•  Vertical Integration and Synergy Potential: The move to 70% control of Agrosem creates immediate cross-selling opportunities across CMGP’s existing 1,200+ distribution points and its established relationships with large-scale farmers and cooperatives. Analysts expect the deal to be accretive to earnings from 2026 onward and to lift group EBITDA margins by 80–150 bps over the medium term.

•  Resilient and Counter-Cyclical Characteristics: Demand for certified seeds, crop protection products and fertilisers displays low elasticity and benefits from recurring government support programmes (subsidies, drought-mitigation schemes, crop insurance). This translates into stable cash-flow generation even in challenging climatic years.

•  Strong Financial Momentum: Recent successful private placement bond issues (October–November 2025) and steady profitability growth (+2.6% net income in H1 2025 despite weather headwinds) demonstrate robust access to capital and disciplined balance-sheet management.

•  Attractive Valuation in a Regional Context: CMGP trades at approximately 13–15× forward P/E and 8–9× EV/EBITDA — a meaningful discount to listed peers in Egypt (e.g., MOPCO) and Tunisia, while offering superior growth visibility (analyst consensus forecasts 12–18% EPS CAGR 2025-2028).

•  Favourable Tax & Ownership Framework for Non-Residents: 15% withholding tax on dividends (often reduced via double-taxation treaties), full repatriation of capital and profits, and no capital gains tax on listed shares held >6 months under most treaties.

•  ESG Alignment: Direct contribution to food security, climate-resilient agriculture and rural development — themes that resonate strongly with impact and sustainable investing mandates.

In summary, CMGP Group offers foreign institutions a rare liquid vehicle to capture Morocco’s agricultural modernisation megatrend, combining defensive demand characteristics, clear consolidation-driven upside, and an attractive risk-adjusted return profile in an under-researched and under-owned emerging market segment.