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Saudi Arabia's Savola Group intents to distribute its entire 34.52% shareholding in regional dairy giant Almarai to eligible Savola shareholders
The distribution will follow a 6 billion riyals ($1.6 billion) rights issue that will help strengthen the company's position, including paying off debt, the kingdom's largest food products company said.
In a regulatory filing on the Saudi Stock Exchange (Tadawul) on Wednesday Savola said the objective was to "unlock value for Savola’s shareholders, who will benefit from direct exposure to the growth potential and future dividend capacity of Almarai."
Sulaiman A. K. Al-Muhaidib, Chairman of Savola Group, said: "The distribution of our stake in Almarai will provide our shareholders with direct exposure to one of the region’s most loved and trusted food brands. Going forward, we will focus on investing in the growth of our core food and retail businesses, whilst continuing to review strategic options to realize value from portfolio companies that demonstrate attractive distribution and monetization potential.”
In 2017, Savola sold a 2% stake, or 16 million shares, in Almarai as part of a capital re-allocation move.
Earlier on Wednesday, Savola posted a Q4 2023 net profit of $60.5 million on higher share of profit from associates and lower operating expenses.
(Writing by Brinda Darasha; editing by Seban Scaria)
