Savola Group — M&A Activity 2012

Apr 1, 2012

Savola Group announces the Latest Developments Related to the Merger between Azizia Panda United and Giant Stores.

2050 · 01/04/2012 16:04:41 · Announcement #24887 · View on Saudi Exchange

Savola Group announces the Latest Developments Related to the Merger between Azizia Panda United and Giant Stores.

Reference to the announcement published in the Saudi Capital Market (Tadawul) on 24/02/2008 with regards to the merger of Azizia Panda United (a subsidiary of Savola Group) and Giant Stores operations (wholly-owned by Al-Muhaidib Group) to create a national entity in the Saudi retail market and the subsequent developments, which were earlier published in Savola Groups Annual Directors Reports for the fiscal years 2008 and 2009 regarding the same transaction.

Pursuant to the said agreement, all shares owned by Al-Muhaidib Group in all companies and branches operating in retail business located in the Saudi Arabia, Lebanon and Qatar to be transferred under the ownership of the Savola Group as per the terms agreed between the two parties. In this regard, Dr. Abdulraouf M. Mannaa, Group MD, would like to mention that, Alhamdulillah, the Savola Group was able to transfer all shares of the companies & branches owned by Al-Muhaidib Group in, both, Saudi Arabia and Lebanon as earlier disclosed in the Groups Directors annual report of 2008 & 2009 their completion of procedures and rehabilitation, which represents major part of the transaction. But the Savola Group was unable to transfer the ownership of Al-Muhaidib Groups operations in Qatar (comprised of four stores) due to the rules and regulations in Qatar. Therefore, due to non-completion of transfer of ownership of the said operations to Savola Group, and as per terms of the agreement, Savola Group has received on 12 March, 2012 corresponding to 19 Rab1a Thani 1433H an amount of SR 61.4 million from Al-Muhaidib Group as settlement, which will be reflected in the financial statements of the Savola Group for the first quarter of 2012 without impacting Income Statement.

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.