Savola Group — M&A Activity 2018

May 6, 2018

Savola Group Announces the Purchase of 51% of Al Kabeer Group of Companies for SAR 565.5 million

2050 · 06/05/2018 15:26:22 · Announcement #50643 · View on Saudi Exchange

Savola Group Announces the Purchase of 51% of Al Kabeer Group of Companies for SAR 565.5 million

The Savola Group (Savola or the Buyer) announces that it has signed on 6/5/2018 a binding Share Purchase Agreement (Agreement) for the acquisition of 51% of Al Kabeer Group of companies (Al Kabeer or the Seller) for SAR 565.5 million. The completion of the share sale under the Agreement shall be within six months from the date of signing, extendable by mutual consent.

Al Kabeer operates in the frozen foods sector with operations in the Kingdom of Saudi Arabia, the United Arab Emirates, the Kingdom of Bahrain and the Sultanate of Oman.

In this transaction, Savola appointed Farrelly & Mitchell as the financial advisor, PricewaterhouseCoopers as the financial & tax due diligence advisor, and LinkLaters as legal advisor. The Seller appointed Alpen Capital as its financial advisor.

During the period of the agreement, Savola will Complete the legal and administrative customary procedures for this transaction.

The major conditions of the agreement include:

- Acquisition of 51% shares in the Al Kabeer for SAR 565.5 million in cash.

- Buyer will have the right to appoint the executive team, and is entitled to the majority of the seats in the board of directors.

- Seller will provide customary representations, warranties and indemnities to the Buyer as per the Agreement.

The legal and administrative procedures for the transfer of ownership at the concerned authorities are expected to be completed within six months from the date of signing.

Al Kabeer was Founded in 1978, and has grown in the frozen food industry in the GCC, with manufacturing presence in United Arab Emirates and Saudi Arabia, and is a leading player within the majority of the categories it operates in.

Anees Ahmad Moumina, Savola Group CEO noted, (We are excited about the prospects of this transaction and adding a brand such as Al Kabeer into our portfolio of leading consumer brands in regional food and retail sectors). He added, (Investment in Al Kabeer represents building on the main pillars of our strategic investments portfolio which spans food and retail sectors across the region).

This transaction will be financed through a combination of operating cash flows and bank loans.

The impact of the transaction is expected to be positive and will be reflected on Savola results once the legal and administrative producers are completed during the second half of 2018.

It's worth mentioning that the completion of this transaction and adding a brand such as Al Kabeer into Savola's portfolio of consumer brands in regional food and retail sectors is in line with Savola's strategy to expand its investment portfolio and enter attractive, value added categories and products within the overall food sector.

Also, Savola would like to confirm that there are no related parties in this transaction.

Savola Group will announce any material developments as and when they occur.

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.