Savola Group — Capital/Financing Update 2013

Apr 6, 2013

The Savola Group announces the latest developments related to the acquisition of Al-Muhaidib Holding Companys shares in some of Savolas Subsidiaries

2050 · 06/04/2013 09:23:22 · Announcement #29992 · View on Saudi Exchange

The Savola Group announces the latest developments related to the acquisition of Al-Muhaidib Holding Companys shares in some of Savolas Subsidiaries

Further to the announcement made by The Savola Group (Savola) through the Saudi Stock Exchange (Tadawul) on 31st October 2011, Savola announces that its Board of Directors, on Wednesday 3rd April, 2013, has approved new transaction terms with Al-Muhaidib Holding Company (Al-Muhaidib) to acquire Al-Muhaidibs 10.0% shareholding in Savola Foods Company (SFC) and its 18.6% (direct and indirect) shareholding in Azizia Panda United Company (Panda) in exchange for issuing new shares in Savola to Al-Muhaidib based on a new agreed valuation (the Transaction).

For the purposes of the Transaction, SFC and Panda have been valued (on a 100% equity basis) at SAR 6.26 billion and at SAR 3.83 billion, respectively. As a result, Al-Muhaidibs shareholdings in SFC and Panda are valued at SAR 626.3 million and SAR 712.6 million, respectively.

As consideration for the acquisition of Al-Muhaidibs shares in SFC and Panda, Savola will issue 33,980,684 new shares to Al-Muhaidib, representing approximately 6.4% of Savola's entire issued share capital after the issue of the new shares. This will increase Savolas total shares in issue from 500,000,000 shares to 533,980,684 shares. The number of new Savola shares to be issued has been determined using a 60-day volume weighted average share price of SAR 39.40 as of 16th March 2013.

As a result of the Transaction, the combined shareholding of AbdulKadir Al-Muhaidib & Sons and Al-Muhaidib Holding Company in Savola will increase from 8.52% to 14.34%, and Savolas direct and indirect shareholding in SFC and Panda will increase from 90.0% to 100.0% and from 74.4% to 93.0%, respectively.

The Transaction is considered to be a related party transaction because AbdulKadir Al-Muhaidib & Sons owns 8.52% of Savola's shares as at the date of this announcement and Mr. Sulaiman Abdulkadir Al-Muhaidib is the Chairman of the Board of Directors for the Savola Group and AbdulKadir Al-Muhaidib & Sons Co.

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