SAGO to disclose investor criteria on June 28 in bid to privatize flour mills

Saudi Grains Organization (SAGO) said the qualification criteria for investors looking to purchase stakes in the Kingdom’s flour mills will be disclosed to the public on Thursday, June 28.

“The audited financial statements of each of the four flour mills for fiscal year 2017 are being prepared, and they will be made available for qualified investors once approved,” SAGO added in a statement.

Saudi Arabia is looking to privatize its flour mills, which are among the largest in the Middle East and North Africa region. HSBC Saudi Arabia was hired to advise on the privatization process.

Late in 2015, SAGO transferred the ownership of four of its flourmill companies to the Public Investment Fund, Argaam earlier reported.

In November last year, Riyadh-based SAGO issued preliminary guidelines on the qualification of potential bidders for state-owned grain mills under the planned privatization program.

The sale has already drawn attention from the some of the world’s largest agribusiness firms, including Archer Daniels Midland Company and Bunge Limited.

It is one of the first privatization initiatives in the Kingdom, as the government implements a wide-reaching overhaul of its economy, and the privatization of other sectors, such as healthcare and education.