Savola plans to distribute 34.5% stake in Almarai to shareholders

In a statement to Tadawul, Savola said the proposed distribution is a significant transaction subject to shareholder approval under Article (121) of the rules on the offer of securities and continuing obligations.

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Accordingly, the company will call an extraordinary general meeting for voting on the transaction and will issue a circular with details.

The in-kind distribution will be proportional to each shareholder's stake in Savola. The payout will apply to shareholders owning Savola shares by the end of the trading day of the general meeting. The capital reduction and required regulatory approvals will be announced later.

The board of directors, in accordance with Article (122) of the rules on the offer of securities and continuing obligations, formed a specialized committee to advise shareholders on the material transaction, consisting of Rakan Alfadl, Abdulrahman Addas, Mutaz Alazzawi, and Waled Alghreri.

Additionally, Riyad Capital was appointed as the financial advisor to provide recommendations to the committee and shareholders on the transaction.

The financial advisor’s and the committee’s letters to shareholders will be included with the shareholder circular and the general meeting announcement.

The in-kind distribution of Savola’s stake in Almarai is linked to the former's capital reduction process, as previously announced on Feb. 12, 2024.

Savola Group’s board of directors recommended today reducing the company’s capital by 73.54% from SAR 11.33 billion to SAR 3 billion.

The reduction will involve canceling shares, with eligible shareholders compensated by receiving Almarai Co.’s shares at a fair value equal to the nominal value of the canceled shares, after adjusting the share fractions, if any.

Almarai ended today's trading 0.5% lower at SAR 57.50, while Savola declined 1.4% to SAR 28.85.

In August, Savola increased its capital by 112.36% from SAR 5.34 billion to SAR 11.34 billion, via a SAR 6 billion rights issue. It offered 600 million ordinary shares at SAR 10 each.