Magasin Général Holds Annual General Meeting: Two Key Takeaways for Investors
Magasin Général held its Annual General Meeting (AGM) on June 11, 2025. The post-AGM information was released yesterday, and two major points deserve the attention of investors. With dozens of shareholder meetings taking place last month, some crucial details might have gone unnoticed, despite their potential direct impact on the company's financial performance and stock price.
1. Renewal of Authorization for Buying Back and Selling Own Shares
The first key point is the renewal of the authorization granted to the Board of Directors to buy back and sell the company's own shares. This decision allows the Board to set the following conditions: the maximum purchase price, the minimum resale price, the number of shares to be acquired, and the deadline for these acquisitions. The Board can also use extraordinary reserves to cover potential losses incurred during these operations.
As a reminder, at the end of 2023, Magasin Général had 13,227 shares available. This mechanism enables the company to adjust its capital management strategy and respond to market fluctuations, while offering flexibility to maximize the value of its shares.
2. Medium-Term Credit Commitments and 2025 Investment Plan
The second important point concerns the approval by the AGM of the medium-term credit commitments for the 2025 fiscal year. A total amount of 11.5 billion Tunisian dinars (Mtnd) has been allocated for the financing of the investment plan, while 200 Mtnd have been reserved for management credits. Among these credits, 8.2 Mtnd will be borrowed from BH Bank.
The AGM also validated the granting of real guarantees and mortgages to secure these credits, as well as the consent of guarantors to secure additional credits in favor of Magasin Général group companies.
It is relatively rare to see an AGM authorize a ceiling for management credits, especially in Tunisia. However, Magasin Général has made it a habit to submit these decisions to its shareholders, a gesture that testifies to the company's good governance and transparency. This allows investors to better understand the company's growth ambitions and get a clear idea of its trajectory.
The credit commitment for 2025 remains equivalent to that of the previous year, indicating that Magasin Général is aiming for more moderate growth. This choice can be interpreted as a willingness to maintain a strategy focused on profitability rather than aggressive sales expansion. This orientation is also in line with the current uncertain economic context, where prudence becomes essential.
