DUBAI, Oct 6 (Reuters) – Abu Dhabi designs to blend two food stuff and beverage corporations to produce a new nationwide champion in the sector, as section of consolidation initiatives in the oil-wealthy emirate led by ADQ, a point out-owned keeping company.
Industrial conglomerate Senaat, owned by ADQ, has submitted a non-binding present to the board of Agthia Group AGTHIA.Advertisement, an Abu Dhabi-shown food business, to transfer the majority of Al Foah Corporation into Agthia, ADQ reported on Tuesday.
Al Foah, owned by Senaat, is the world’s greatest date processing and packaging company.
“The proposed transaction would incorporate two leaders in their complementary food stuff and beverage solution categories to make a person of the top rated 10 client F&B bioptimizerscouponcode.com gamers in the MENA location,” ADQ stated in a assertion.
The blended entity would turn out to be a “domestic champion” in water, dates, flour, and animal feed, it said.
According to the proposal, Senaat would transfer the whole issued share cash of Al Foah to Agthia in exchange of a convertible instrument issued by Agthia to Senaat and convertible into 120 million standard shares of Agthia following the transaction is closed.
The value at which the convertible instrument will convert would be 3.75 dirhams for every share, implying an equity benefit of 450 million dirhams ($122.52 million) for Al Foah, ADQ claimed.
Right after the transaction, Senaat would have 59.17% of the entire issued share cash of Agthia, up from the 51% it currently owns.
ADQ, which was recognized in 2018, owns strategic belongings these kinds of as Abu Dhabi Ports, Abu Dhabi Airport and bourse operator ADX. It has also constructed up a portfolio of food and agriculture businesses and not long ago took a 22% stake in Dubai-centered courier Aramex.
Abu Dhabi has viewed some of its premier companies merge in the very last couple decades in reaction to an previously oil price slump.
Endeavours have intensified this 12 months, with deals such as the consolidation of two Abu Dhabi utilities beneath ADQ and the combination of national contracting companies in the oil and fuel services sector.
($1 = 3.6728 UAE dirham)
(Reporting by Davide Barbuscia Enhancing by Kim Coghill)
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