Savola to acquire UAE’s Al Kabeer Group for SAR 566 mln

Savola Group signed on Sunday a binding share purchase agreement to acquire 51 percent of Dubai-based Al Kabeer Group for SAR 565.5 million in cash, the Saudi-listed company said in a bourse statement.

The completion of the share sale shall be within six months from the signing date, extendable by mutual consent.

Savola has appointed Farrelly & Mitchell as financial advisor, PricewaterhouseCoopers as financial & tax due diligence advisor, and LinkLaters as legal advisor for the transaction.

Meanwhile, Al Kabeer has named Alpen Capital as its financial advisor.

During the period of the agreement, Savola will complete the legal and administrative customary procedures for this transaction.

The buyer will have the right to appoint the executive team, and is entitled to the majority of the seats in the board of directors while the seller will provide customary representations, warranties and indemnities to the buyer as per the agreement.

The legal and administrative procedures for the transfer of ownership are expected to be completed within six months from the date of signing.

The deal will be financed through a combination of operating cash flows and bank loans, the statement added.
 
The transaction is expected to have a positive impact on Savola’s financials that will be reflected once the legal and administrative producers are completed during the second half of 2018.

Al Kabeer is a frozen foods company founded in 1978, and operates in the frozen foods sector with operations in the Saudi Arabia, the United Arab Emirates, Bahrain and Oman.

The company has a manufacturing presence in the UAE and Saudi Arabia.

No related parties are involved in this transaction.