Magasin Général Convenes Ordinary General Meeting on November 14, 2024
Magasin Général has summoned its shareholders to an Ordinary General Meeting on November 14, 2024. The objective is to grant the board of directors of the retail chain the authorization to issue bonds with a maximum value of 50 million Tunisian dinars within a one-year period.
This will enable the company to implement its 2023-2026 recovery plan, which focuses on improving the customer experience in stores, rebuilding its offer to adapt to the Tunisian market, and simplifying and digitizing its central organization. This is no easy feat in a complicated context marked by inflation, which weighs on purchasing power.
Salary revisions, through the revision of the IRPP, and the increase in state officials' salaries will give a slight boost to consumption, allowing for the possibility of increasing turnover at a faster rate than expected. However, the distributor must primarily ensure that it controls its operating expenses. Improving productivity is not easy and generally requires investments in information systems. An investment cycle is necessary, which explains the issuance of these bonds.
The Assembly is also called upon to approve the appointment of Mohamed Salah Hmaidi as a representative of minority shareholders for a term extending from 2024 to 2026. Furthermore, shareholders will vote on the agreement concluded between SMG and HeBac, a company managed by Hedi Baccour, who is also the representative of Med Invest on the board of directors, and the update of the current account agreement between Magasin Général group companies, modifying the remuneration rate from 10% to 11%, effective as of August 1, 2024.
The company will have no trouble mobilizing the necessary funds. For investors, this is a long-term investment. The company has not distributed dividends for 5 years and must absorb its previous losses, but it is capable of getting back on track.
