Abdullah Al Othaim Markets Co. — Capital/Financing Update 2021

Apr 19, 2021

Abdullah Al-Othaim Markets Company announces the Board of Directors resolution to enter into a consortium with Allana International Company and the United Feed Manufacturing Company for the purpose of competing to acquire one of the two milling companies offered for privatization by the Saudi Grains Organization.

4001 · 19/04/2021 08:37:49 · Announcement #62880 · View on Saudi Exchange

Abdullah Al-Othaim Markets Company announces the Board of Directors resolution to enter into a consortium with Allana International Company and the United Feed Manufacturing Company for the purpose of competing to acquire one of the two milling companies offered for privatization by the Saudi Grains Organization.

Element List

Explanation

Announcement Detail

Abdullah Al-Othaim Markets Company announces Board of Directors’ resolution on 18/4/2021 by circulation, to enter into a consortium with Allana International Company and United Feed Manufacturing Company (the "Consortium") for the purpose of jointly bidding to acquire one of the two milling companies offered for privatization by the Saudi Grains Organization in a public competition which includes the Second Milling Company and the Fourth Milling Company (“the target asset”) according to the Request For Proposals dated 13/9/2020 issued by The National Center for Privatization in collaboration with the Privatization Committee formed by the Ministers’ Council decision No. 35 dated 27/1/1437 H regarding to the privatization of the flour milling sector in Saudi Arabia as a part of achieving the Kingdom's Vision 2030, by enhancing governmental assets utilization, improving their operational efficiency, attracting local and international investments, raising the private sector's contribution to the GDP and supporting the local market in general.

The Board of Directors decision comes to support the company's continuous pursuit for integration and investment diversification and to contribute in achieving food security.

In the event that the target asset is awarded to the consortium by the National Center for Privatization, the financial impact of the acquisition transaction will be announced, also, a joint venture agreement would be signed to organize the relation among the consortium members through a holding company that would be equally incorporated by the consortium members.

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

It is worth it to mention that there are no related parties in this transaction.

Any significant developments, if any, would be announced in due course.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.