Qassim Investment sells poultry business’ stake for SAR 9 mln

Qassim Investment Holding Co. (QACO) has finalized selling its stake in Pure Breed Poultry Co. to Hail Agricultural Development Company (HADCO) for SAR 9 million, the company said in a bourse statement.

The book value of QACO’s ownership in Pure Breed Poultry was valued at SAR 5.48 million, the statement noted, adding that QACO is expected to generate SAR 3.52 million in profit from the deal.

The stake was valued at SAR 9.375 million, but it is currently re-valued at SAR 9 million. Similarly, the book value of QACO’s stake in Pure Breed Poultry Co. was valued at SAR 3 million, and now it is re-valued at SAR 5.48 million. 

In addition, the deal profit is now valued at SAR 3.52 million, while it was previously expected at SAR 6.375 million.

The relevant financial impact is forecast to reflect on the company’s earnings in Q3 2019.

In December 2017, QACO approved a purchase offer submitted by a shareholder in Pure Breed Poultry Co. to buy QACO’s 6.45 percent stake in the company for SAR 9.38 million, Argaam reported.

Pure Breed owns and operates poultry farms and produces animal feed.