Saudi-listed food-processing firm Savola Group is working with US investment bank Moelis & Co. to explore potential suitors for part or total sale of its 35% stake in Almarai Co., Bloomberg reported, citing sources.

The stake is valued at $5.4 billion (20.26 billion Saudi riyals) based on Almarai stock’s closing price at SAR 57.30 on the Saudi stock exchange (Tadawul) on Monday, the report said.

Talks are at an early stage and Savola may decide not to sell, the report added.

Savola, which also trades on Tadawul, rose 9.9% to close at SAR 38.85.

Saudi sovereign Public Investment Fund holds a 16% stake in Almarai through a subsidiary, Bloomberg said.

Savola sold a 2% stake, or 16 million shares, in Almarai as part of “its capital re-allocation” in 2017, the news agency reported.         

(Editing by Brinda Darasha; brinda.darasha@lseg.com)