SAVOLA ANNOUNCES THE MERGER BETWEEN AZIZIA PANDA AND GIANT STORES.

Reference to the announcement published in the Saudi Capital Market (Tadawul) on 24/02/2008 with regards to the merger of Azizia Panda United (a subsidiary of Savola Group) and Giant Stores operations (wholly-owned by Al-Muhaidib Group) to create a national entity in the Saudi retail market and the subsequent developments, which were earlier published in Savola Groups Annual Directors Reports for the fiscal years 2008 and 2009 regarding the same transaction.

Pursuant to the said agreement, all shares owned by Al-Muhaidib Group in all companies and branches operating in retail business located in the Saudi Arabia, Lebanon and Qatar to be transferred under the ownership of the Savola Group as per the terms agreed between the two parties.

 In this regard, Dr. Abdulraouf M. Mannaa, Group MD, would like to mention that, Alhamdulillah, the Savola Group was able to transfer all shares of the companies & branches owned by Al-Muhaidib Group in, both, Saudi Arabia and Lebanon as earlier disclosed in the Groups Directors annual report of 2008 & 2009 their completion of procedures and rehabilitation, which represents major part of the transaction. But the Savola Group was unable to transfer the ownership of Al-Muhaidib Groups operations in Qatar (comprised of four stores) due to the rules and regulations in Qatar. Therefore, due to non-completion of transfer of ownership of the said operations to Savola Group, and as per terms of the agreement, Savola Group has received on 12 March, 2012 corresponding to 19 Rab1a Thani 1433H an amount of SR 61.4 million from Al-Muhaidib Group as settlement, which will be reflected in the financial statements of the Savola Group for the first quarter of 2012 without impacting Income Statement.