Abu Dhabi – The board of Agthia Group has approved to issue mandatory convertible bonds with a nominal value of AED 1 each in an aggregate amount of AED 450 million to acquire Al Foah Company.

Agthia will issue these bonds to General Holding Corporation (Senaat) as an acquisition price for Al Foah, the world's largest dates and date-based products processing and packaging company, according to Agthia's disclosure to the Abu Dhabi Securities Exchange (ADX) on Tuesday.

These bonds will be converted to 120 million shares at a conversion price of AED 3.75 for each new share in Agthia.

Hence, Agthia's issued share capital will increase to AED 720 million from AED 600 million.              

During its meeting, the board has also agreed on all agreements related to the transaction, including the bond issuance agreement and the acquisition agreement.

Moreover, the board approved to file an application to the Securities and Commodities Authority (SCA) to obtain its approval on the transaction.

It is noteworthy to mention that in late November, Agthia's shareholders agreed on the acquisition of Al Foah Company.

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