Savola sets SAR 70/share for Almarai stake sale

Savola Group, Saudi Arabia’s largest food producer, said it has completed an accelerated book building process (ABB) to sell 16 million of its shares in Almarai Co.

The price per share was determined at SAR 70 with a total deal value of SAR 1.12 billion, the group said in a statement to the Saudi bourse, Tadawul.

The sale of Savola’s shares in Almarai will take place during trading hours today.
 

The group will announce the number of shares sold and total amount of proceeds once the settlement process of the special trades is completed on Sunday, Sept.17.

Savola said it expects to record a profit of SAR 694.1 million, which will be reflected on Q3 earnings. Its stake in Almarai will then drop from 36.52 percent to 34.52 percent.

The group intends to use the proceeds of the sale, once completed, for “general corporate purposes,” it said in the statement.

Savola has appointed HSBC Saudi Arabia as broker and bookrunner and Abuhimed AlSheikh AlHagbani Law Firm (in cooperation with Clifford Chance LLP) as legal advisors for the transaction.