Normal Holding Company, higher referred to as Senaat, the only real shareholder of Al Foah Firm, the world’s largest date processing and packaging firm, introduced on Tuesday that it has submitted a non-binding supply to the board of regional meals large Agthia Group.
The supply units out the principal phrases and circumstances on which nearly all of Al Foah’s enterprise could be transferred to Agthia.
The proposed transaction would mix two majors of their complementary meals and beverage product classes to create one of many prime 10 shopper F&B gamers within the MENA area, an announcement stated.
The mixed entity will even develop into a home champion in 4 important classes – water, dates, flour, and animal feed, it stated.
If the board of Agthia recommends the supply, and it’s subsequently authorised by the shareholders of Agthia, then Senaat anticipates closing this transaction earlier than or throughout Q1 2021, topic to the receipt of all required regulatory approvals.
It added that the mixed entity will even increase its breadth of shopper merchandise, particularly within the extra premium finish of the date market worth chain whereas rising aggressive entry to new market segments, similar to supermarkets, motels, eating places and cafés, in addition to export markets in Europe, the US and Asia.
Senaat stated the proposed transaction gives shareholders a “value-accretive take care of alternatives for a number of revenue-enhancing and cost-saving synergies”.
As per the proposal, Senaat would switch the complete issued share capital of Al Foah to Agthia. In consideration for the share switch, Agthia would difficulty to Senaat a convertible instrument, convertible into 120 million atypical shares in Agthia upon closing of the transaction.
The value at which the convertible instrument will convert into shares in Agthia is AED3.75 per share. This suggests an fairness worth of AED450 million for Al Foah. Submit conversion into shares, Senaat would personal 59.17 % of the complete issued share capital of Agthia, up from the 51 % it at present owns within the group.
Mohamed Hassan Alsuwaidi, CEO of ADQ, mother or father firm of Senaat, stated: “We see this proposed transaction as the combination of two main operators of their respective classes that may create a nationwide F&B champion. The mixed firm can have the size, power and ambition to create one of many prime 10 F&B gamers within the Center East.”
Mohamed Hassan Alsuwaidi, CEO of ADQ
Based in 2005, Abu Dhabi-based Al Foah is the biggest date processing and packaging firm on the earth, promoting a mean of over 108,000 metric tons yearly over the past 4 years.
At present, the corporate exports a big quantity of its manufacturing to 45 nations world wide, with important publicity to high-growth Asian markets similar to India, Indonesia, and Bangladesh. Al Foah achieved revenues of roughly AED504 million and web revenue of roughly AED83 million in 2019.
Headquartered in Abu Dhabi, ADQ was established in 2018 as a public joint inventory firm and holds a various portfolio of main enterprises spanning key sectors of Abu Dhabi’s economic system, together with utilities, tourism and hospitality, aviation, transportation, logistics, industrial, actual property, media, healthcare, meals and agriculture, and monetary providers.