The National Center for Privatization & PPP (NCP), and the Saudi Grains Organization (SAGO) announced today, Sept. 17, the completion of phase I of the privatization of First Milling Co. and Third Milling Co.
This involved a competitive tender process for the shares of two of the four milling companies to strategic investors, according to an official statement.
Shares of First Milling Co. will be transferred to AlRaha AlSafi consortium, while the Third Milling Co. will be sold to AlRajhi-Ghurair-Masafi consortium.
“The flour milling sector privatization will help in boosting competitiveness, improving operating efficiency, and diversifying floor products in the local markets,” said Abdulrahman Al-Fadley, Minister of Environment, Water and Agriculture.
The ownership transfer will help introducing high-quality services to nationals and residents, and support the government’s efforts as regards food security, in line with Saudi Vision 2030, Al-Fadley added.
In addition, the public-private partnership (PPP) will help to make the optimum use of state-owned assets and attract both domestic and international investments.
SAGO will become the regulator of the milling sector after privatization and the primary supplier of wheat, barley and other grains to the privatized milling companies, said SAGO governor, Ahmad bin Abdul Aziz Al-Fares.
“SAGO will map out an organizational framework, while fulfilling the requirements of food security and providing high-quality products, in a way that secures a good consumer experience and generates investment proceeds for the private sector,” he noted.
Furthermore, the grain authority will qualify and train employees in the sector, create incentive benefits and stimulate new job opportunities in flour milling companies for the national workforce.
Comments
{{DisplayName}}
{{ElapsedTime}}