Saudi Al Othaim Markets to enter consortium to bid for SAGO flour mill

Allana International and United Feed Manufacturing will be consortium partners

  
Image used for illustrative purpose.

Image used for illustrative purpose.

Getty Images

Saudi food wholesaler Abdullah Al Othaim Markets will enter into a consortium with Allana International Company and the United Feed Manufacturing Company to bid for one of the two milling companies offered for privatization by Saudi Arabia's state grain buyer, Saudi Grains Organization (SAGO).

In a bourse filing on Monday, the Saudi Tadawul-listed company said if the asset is acquired the three companies would sign a joint venture agreement to set up a holding company that would be equally incorporated by the consortium members.

The acquisition will be financed through a combination of self-financing by consortium members and borrowing from local banks in name of company that will be incorporated for this purpose.

Al Othaim Markets said the financial impact would be declared once the acquisition goes through.

SAGO, one of the world’s largest wheat and barley importers, is the kingdom’s monopoly state grain buyer. It plans to sell its flour mills as part of the privatization drive started under the Vision 2030.

Last week, a consortium which included Ghurair Investment (AGI), Al Rajhi Holding Group and Masafi, said it completed the acquisition of a 100 percent stake in the Third Milling Co. (MC3).

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021

More From Commodities