Almarai Co. — M&A Activity 2011

Dec 21, 2011

Almarai acquires 100% of Fondomonte S.A. for SAR 312 million

2280 · 21/12/2011 09:28:51 · Announcement #23426 · View on Saudi Exchange

Almarai acquires 100% of Fondomonte S.A. for SAR 312 million

On Tuesday 20th December 2011, Almarai Company (Almarai) acquired 100% of the shareholding of Fondomonte S.A., a company that owns and operates three farms in Argentina. The transaction is in line with the direction of the Saudi Government towards securing supplies and conserving local resources and forms part of Almarais continuous efforts to improve our supply chain and ensure access to the highest quality feed for both our dairy herd and poultry business.

The transaction value is SAR 312 million and is financed from a combination of operational cash flows and Islamic banking facilities (Murabaha).

Fondomonte S.A. is comprised of three arable farms totaling 12,306 hectares and is dedicated to the production of corn and soybean. The systems used are state of the art and the management team has consistently delivered above average performance.

This initiative forms another step in Almarais strategy of securing its supply of farm feed.

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.