Assad Tunisian Company's Board of Directors Approves Capital Increase for Algerian Subsidiary
The board of directors of L'Accumulateur Tunisien Assad, which met on February 6, 2025, has validated a mission to find an institutional partner to increase the capital of its Algerian subsidiary, Batterie Assad Algérie. This capital increase would be accompanied by an option to exit on the Algerian stock exchange after a agreed-upon holding period.
The projected recapitalization amounts to a minimum of 1 billion Algerian dinars (approximately 23.535 million Tunisian dinars). This move is part of the new development program for Batterie Assad Algérie and is expected to be completed before the end of June 2025.
Batterie Assad Algérie is an Algerian joint-stock company with a capital equivalent to 1.1 million Tunisian dinars, owned 48.0% by Assad, 47.99% by Assad International, and 4.0% by an Algerian partner. The company specializes in the production of starter batteries.
As of the end of 2023, the parent company in Tunisia holds claims on Batterie Assad Algérie amounting to 28.874 million dinars, most of which date back to previous years. The collection of these claims has been delayed due to operational difficulties faced by the Algerian company, including those caused by the COVID-19 crisis, as well as the need for funds for investments. The management has obtained the approval of the Algerian Central Bank for the repatriation of these claims and is currently working on a financing plan to ensure the availability of funds for the repatriation of part of these claims.
Boosting Assad Algérie will benefit the parent company, allowing it to recover liquidity if needed for its operations and potentially close its file with the Tunisian customs authorities. The positive aspect is that the management is thinking in the right direction, seeking concrete solutions to clean up the group's situation. Opening up the capital of subsidiaries is a path to explore.
