Savola starts procedure to sell part of Almarai stake

Savola Group started on Tuesday procedures to sell 16 million of its shares in Almarai Co., representing 2 percent of total shares in the dairy giant, to local and international investors.

The sale will be conducted via an accelerated book building process (ABB), which will also determine the number of shares to be allocated for each investor and purchase price per share, Savola said in a statement to Tadawul.

Sales transactions will be executed separately with each investor through block trade deals.

The number of shares to be sold may exceed 16 million, depending upon investors’ requests during the book building process, Savola said.

Financial impact of the deal will be determined after the book-building process, results of which are expected to be announced before trading on Sep. 13.

The proceeds of the stake sale will go towards financing Savola’s operations in general, the statement said, adding that no related parties are involved in the transaction.

Savola currently owns a 36.52 percent stake in Almarai and is one of the company’s major shareholders.

The group will not dispose of any of its remaining shares in Almarai for at least six months after the deal, unless it obtains certain approvals.

The transaction is subject to the results of the book building process and the completion of negotiated deals with potential buyers, Savola noted.