Monday, Nov 21, 2011
(This item was originally published Sunday.)
DUBAI (Zawya Dow Jones)--Saudi Arabia's Almarai Co. (2280.SA) said Sunday its shareholders have approved a plan for the region's largest dairy producer to issue Islamic bonds, or sukuk.
Almarai, in a statement posted on the Saudi bourse website, said shareholders have "authorized the board of directors to take all necessary measures to issue such sukuk, once the necessary approvals from the relevant authorities have been received".
Last month, Almarai said it would 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 said.
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.
Almarai shares last traded Sunday down 1.1% at SAR91 in a slightly negative overall market.
-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
21-11-11 0353GMT
