The largest food products company in Saudi Arabia, Savola, announced that it intends to give eligible shareholders its 34.52 per cent stake in the local dairy company Almarai, according to the company’s disclosure to Tadawul on Wednesday.
Prior to the deal, a rights issue worth 6 billion riyals ($1.6 billion) will be held to bolster the company’s position, pay off debt, and allow for the distribution of shares in Almarai, the largest dairy company in the Middle East.
Savola’s board greenlit the rights issue and distribution of Almarai shares; however, they still need to be approved by regulators and shareholders.
In addition, Savola stated that it would consider listing Panda, its supermarket chain, in the future as it has shown signs of a robust recovery in profitability.
The Saudi food company’s shares rose by 3.8 per cent while Almarai’s shares fell by 3.7 per cent at market open in Riyadh amid the announcement.
($1 = 3.7502 riyals)
