ADNH Catering signs deal to up stake in Saudi JV to 50%

ADNH Catering PLC announced it has entered into a sale and purchase agreement (SPA), through its subsidiary, ADNH Catering, for the acquisition of an additional 20% equity share in its Saudi joint venture (JV) from Compass Group.

Under the terms of the SPA, ADNH Catering Group will acquire an additional 20% equity stake in the JV, thereby increasing its shareholding from 30% to 50%, according to a press statement.

Al Rushaid Group will hold the remaining 50% equity stake.

The completion of the transaction is subject to regulatory requirements, and is expected to take place in Q1 2025.

In addition to the SPA, ADNH Catering entered into a shareholder agreement with Al Rushaid Group to manage the Saudi JV and have control over its operations.

Accordingly, the JV's financial position and results of operations will be consolidated in ADNH Catering’s financial statements post-completion of the transaction.

ADNH Catering Group believes that Riyadh, as Saudi Arabia’s largest and most rapidly expanding city, and the high-growth private healthcare sector represent especially compelling opportunities to increase market share in the Kingdom.

The JV, which was set up in 2012, has seen healthy business growth, with the number of clients served growing by 17% from September 2021 to September 2023.