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AFRICAN FORAY

Sabic unit to acquire 49% stake in ETG Inputs Holdco

RIYADH, January 30, 2022

Sabic Agri-Nutrients Company, a public joint-stock company owned 50.1% by Sabic, has signed a share purchase agreement with the ETC Group (ETG) to acquire a 49% stake in the ETG Inputs Holdco Limited (EIHL) for $320 million.

The agreement is based on cash-free, debt-free and changes in the working capital adjustment that will be determined at transaction completion.

The agreement is part of Sabic Agri-Nutrients Company strategy to integrate the value chain and include the blending and distribution of agri-nutrients in the global markets and move closer to farmers and end-customers, benefitting from EIHL’s presence across Sub Saharan Africa through distribution and blending of fertilizers, seeds, and crop protection items. EIHL owns more than 350 distribution centres across Africa.

With its network of agents and agronomists, EIHL positioned itself to cater to commercial and farmer requirements across Africa.

“This move will help us expand our footprint taking advantage of growth opportunities to keep up with expected developments and to position the Company as a leading player in the global agri-nutrients industry with the best-in-class capabilities in manufacturing, operation, planning, marketing, sales, supply chain, technology and research, and aftermarket services,” said Abdulrahman Shamsaddin, Sabic Agri-Nutrients Company CEO.

“We are extremely proud to welcome Sabic AN as our partner and look forward to creating a sustainable impact across our markets. We are dedicated to addressing food shortage and providing quality products to increase farmers’ yields and optimize their earnings. We are delighted to have found a partner that has the same drive and passion to support our vision,” said Ashish Lakhotia, CEO of EIHL.

Sabic launched Sabic Agri-Nutrients Company in 2020 with a vision to be the national champion and a global leader in the agri-nutrients industry and maintain the momentum of support for Saudi Vision 2030.

The new company adopts a distinct operating model that focuses on a number of pillars to ensure sustainable growth and offer more differentiated agri-nutrients solutions. The focus areas include a more effective agri-nutrients business strategy, fully focused research and development programs, sales and supply chain and talent attraction and development. – TradeArabia News Service




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