Almarai Co. — M&A Activity 2008

Nov 8, 2008

Almarai makes an offer to acquire Hail Agriculture Development Company

2280 · 08/11/2008 08:47:53 · Announcement #13989 · View on Saudi Exchange

Almarai makes an offer to acquire Hail Agriculture Development Company

Almarai Company (?Almarai?) announces that it has submitted on Thursday 6 November 2008 a formal offer to the Board of Directors of Hail Agriculture Development Company (?HADCO?) to acquire 100 per cent of the outstanding share capital of HADCO in exchange for new shares to be issued by Almarai in the ratio of 1 new Almarai share for every 6 HADCO shares. This equates to the issue of 5 million new Almarai shares to HADCO shareholders. The proposed offer represents a 29 per cent premium to the closing share price of HADCO as at 5 November 2008 based on the closing share price of Almarai as at the same date. The proposed offer has been approved by the Board of Directors of Almarai, however any final offer by Almarai is subject to confirmatory financial, technical, commercial, and legal due diligence and completion of the proposed acquisition will be subject to obtaining the necessary approvals required by the Capital Market Authority and the approval of the shareholders of Almarai and HADCO. Almarai is committed to completing the proposed transaction in a quick and efficient time frame and will announce further details 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.