Sunday, Oct 16, 2011
RIYADH (Zawya Dow Jones)--Saudi Arabia's Almarai Co. (2280.SA), the region's largest dairy producer, Sunday said its shareholders will vote Nov. 19 on a plan to issue Islamic bonds, or sukuk.
Almarai said, in a statement posted on the Saudi bourse website, that it will issue one or a series of bonds, which will be compliant with Islamic law, from time to time. The size of the offering will be set by the firm's board without referring to the shareholders' general assembly, it added.
Almarai shares were last trading down 0.3% at SAR85.50 in a slightly negative market.
Last week, Almarai said its third-quarter net profit rose 1.2% to 429.7 million Saudi riyals ($114.6 million) from SAR424.5 million in the year-earlier period.
Almarai in 2009 completed a SAR949.5 million cash-and-stock acquisition of Hail Agricultural Development Co., or Hadco, the first successful takeover between two Saudi-listed firms. It plans to invest SAR2 billion to expand the Hadco business, and will focus investments on raising Hadco's poultry output fivefold to an average of 120,000 chickens an hour.
The dairy producer previously made a number of acquisitions, including Egyptian subsidiary the International Co. for Agroindustrial Projects, better known as Beyti, and Jordan's Taiba Investment and Advanced Food Co.
In December, Almarai said its shareholders approved a plan to double its capital to SAR2.3 billion via bonus shares as the firm continues to expand.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
16-10-11 0851GMT
