Saudi Savola Group Ups its Stake in Almarai to 36.52%

Thursday, Oct 18, 2012

(This story was originally published on Wednesday.)

RIYADH (Zawya Dow Jones)--Saudi Arabian food company Savola Group (2050.SA) said Wednesday it is acquiring additional shares in Almarai Co., the Gulf's largest dairy producer, for a value of 2 billion Saudi riyals ($533.3 million).

Savola's stake in Almarai company will rise from 29.95% to 36.52% as result of the transaction which was completed Oct. 16., the company said in a statement posted on the Saudi bourse website.

The acquisition was financed through a combination of the company's operational cash flow and Islamic banking facilities from local banks, Almarai said.

"The acquisition of additional shares in Almarai Co. is in line with the Group's strategy of further growing its exposure in its core sectors," Dr. Abdulraouf M. Mannaa, the Group Managing Director, said.

Savola last hiked its share holding in the dairy producer from 26.5% to 29.95% in 2010.

Earlier this week the company reported a 32% jump in third quarter net profit, boosted by stronger sales, and said full year profit should beat its original forecast.

Savola shares closed Tuesday 2.2% higher at SAR37.60.

Write to Iman Dawoud at iman.dawoud@dopwjones.com

(END) Dow Jones Newswires

18-10-12 0338GMT