Savola Group — Capital/Financing Update 2011

Oct 31, 2011

The Savola announces The latest developments regarding the initial agreement related to the acquisition of Al Muhaidib Group and Al Hokair Group shares in certain subsidiaries

2050 · 31/10/2011 16:32:59 · Announcement #23212 · View on Saudi Exchange

The Savola announces The latest developments regarding the initial agreement related to the acquisition of Al Muhaidib Group and Al Hokair Group shares in certain subsidiaries

With reference to announcement and details published in Tadawul on 23rd August, 2010 related to the initial agreement signed by Savola Group (Savola) to purchase some shares owned by Al-Muhaidib Group in Savola Foods Company & Al-Azizia Panda United Company (Savola Group Subsidiaries), and also the initial agreement signed by Savola to purchase some shares owned by Al-Hokair Group in Al Azizia Panda United Company (Azizia Panda) as per the details announced on 25th September, 2010.

Savola would like to announce that its Board of Directors has been informed that Al-Hokair Group has decided that it does not wish to continue in finalizing the initial agreement related to Savola acquiring Al-Hokairs shares in Azizia Panda by issuing new shares for Al-Hokair in Savola share capital as the two parties could not reach to final agreement within the timeframe agreed in the initial agreement. Also the Board has been informed that Al-Hokair Group has decided to exercise the call option for purchasing additional 3% in Azizia Panda share capital as per the agreement signed between the two parties and was announced in Tadawul on 12 October, 2009 as part of Azizia Panda acquisition of Saudi Geant and part of its assets.

On the other hand, the Savolas Board has decided to continue with the procedures related to the acquisition of Al- Muhaidib Group minority shares in both Savola Foods Co. & Azizia Panda by issuing new shares to Al-Muhaidib Group in Savola Groups share capital. The new shares will be issued based on a new valuation, which will be made by a financial advisor and after getting all required approvals from related government authorities. The capital market will be updated on any material developments in due course.

Dr. Abdulraouf Mannaa, the Group Managing Director, reiterated that Savola will continue to invest in growth, both organically and via acquisitions, in its core sector (foods, retail & plastic businesses) as part of its strategy of focus and sustainable growth. He also mentioned that, InshaAllah, Savola expects to achieve record net income before capital gain of SR 1 billion for the year 2011 in line with the guidance provided.

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