ECP and Attijari reap 8.4x on CMT exit (IRR 94%)

Emerging Capital Partners (ECP) and Attijari Invest have hauled in 8.4x returns on their investment in Morocco-based resources exploration processing company Compagnie Minière de Touissit (CMT)). The exit generated an internal rate of return (IRR) of 94% for the investors’ co-managed fund.
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The private equity investors have exited the company by selling their entire stake in Osead Maroc Mining (OMM), the holding company that has been the controlling shareholder in CMT. OMM is also part owned by Truffle Capital. ECP and Attijari  invested in OMM through the Moroccan Infrastructure Fund (MIF), a vehicle they jointly manage. The returns are based on the MIF’s initial funded investment  through OMM.
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“Our partnership with Osead is a clear example of how we work with high potential, local companies such as OMM to help them achieve their next growth phase,” said Nayel Vidal, director at ECP said. “Today, OMM’s investment is among the most profitable listed Moroccan companies and we wish the company well as it continues its regional expansion.”
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ECP and Attijari initially backed CMT through a $50.5million (EUR 38.3 million) acquisition 2007. A year later, CMT listed on the Casablanca Stock Exchange through the sale of 33% of its capital. The initial public offering was 14x oversubscribed.
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The funding from the investors has helped the company boost expansion, with revenues touching $80 million (MAD 647 million) in 2011, a 27%  average annual revenue growth since 2008. The company reported profits of MAD 362 million in 2011.
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CMT is a mining company specialising in the exploration, extraction and treatment of silver-bearing lead and silver-bearing zinc. The company quarries a number of subterranean mines and operates an ore treatment plant at Tighza, southeast of Meknes.
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Managing director Karim Fath represented Attijari Invest on the exit. Attijari is the private equity arm of Attijariwafa bank, a Morocco-based bank. Samir Belrhandoria worked on the deal for MIF.