NADEC says deal to acquire ASD is still in progress

The National Agricultural Development Company (NADEC) has disclosed the latest updates with regards to entering into a sale and share purchase agreement to acquire 100 percent of the shares of ASD from Al Safi Holding Company (Al Safi Holding) and Danone Dairy Investments Indonesia Pte Ltd (DDII).

The Saudi-listed firm said that parties have worked diligently to satisfy the conditions precedent to completion as set out under the Agreement, and have satisfied a number of conditions precedent including obtaining the approval of the General Authority for Competition in connection with the economic concentration arising from the transaction as well as other conditions relating to the reorganization of the business and assets used by ASD and its subsidiaries.

“The conditions precedent has not been satisfied before the Long Stop Date as the parties are still completing the requirements relevant to the capital increase application including updating the relevant documentation”, NADEC said in a bourse statement.

The parties agreed to include ASD’s audited financial statements for the financial year ending on Dec. 31, 2018 in the capital increase application to enable the shareholders of NADEC to vote on the transaction based on the latest up to date financial information.

Under the terms of the agreement, if the conditions precedent have not been satisfied on or before Dec. 31, 2018 (Long Stop Date), any of the parties to the agreement may terminate the agreement with immediate effect by giving written notice to each of the other parties.

However, none of the parties have served a notice to the other parties to terminate the agreement.

NADEC added that the agreement is still in full force and effect and the parties remain committed to perform the agreement and achieve satisfaction of the conditions precedent as well as the requirements related to the application.

The transaction is now expected to be completed in the second quarter of 2019 after obtaining the required approvals.

The company will continue to announce any material developments in respect of the transaction as and when they occur.