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Saudi firm set for merger talks with Al Safi Danone

RIYADH, October 8, 2017

Saudi-based National Agricultural Development Company (Nadec) said it is set to start merger talks with leading dairy company Al Safi Danone (ASD) that will be executed through a share swap deal.

ASD is a joint venture between Saudi Arabia's Al Safi Group of Companies and French food company Danone.

An MoU has been inked with the Saudi dairy to commence discussions on the possibility of a business combination of Nadec and ASD through acquisition of all of the shares of ASD, stated Nadec in a filing to the Saudi Tadawul on Sunday.

As per the deal, Nadec aims to buy all shares of Al Safi Danone Comapny and in exchange offer new shares to ASD's shareholders.

Subject to confirmation during the due diligence phase, at completion of the proposed transaction, the current ASD shareholders will, in aggregate, own 38.75 per cent of Nadec's pro forma issued share capital, said the statement.

The term of the MOU is for a period of six months. The parties have agreed on an exclusivity period during which they will conduct financial, commercial and legal due diligence, it added.-TradeArabia News Service

Tags: Saudi | dairy | merger | Nadec | Al Safi Danone |

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