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Abdullah Al Othaim consortium to acquire Saudi milling firm for $229m

RIYADH, April 22, 2021

Saudi-based Abdullah Al Othaim Markets Company has announced that its consortium with Allana International and United Feed Manufacturing Company has signed a deal worth SR859 million ($229 million) with National Center for Privatization to acquire the Fourth Milling Company.
 
A joint venture agreement would be signed to organise the relations among the consortium members through a holding company that would be incorporated by the consortium members with equal shares, said the company in its filing to Saudi bourse Tadawul.
 
The acquisition transaction with National Center for Privatization will be self-financed from the consortium members, in addition to borrowing from local banks under the name of the holding company that will be incorporated, it stated.
 
The Board of Directors decision comes to support the company's continuous pursuit for integration and investment diversification and to contribute in achieving food security, said the statement.
 
The three firms will set up a holding company at equal equity ownership to acquire one of the two milling companies offered for privatization by the Saudi Grains Organization in a public competition which includes the Second Milling Company and the Fourth Milling Company, it added.-TradeArabia News Service



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