A branch of Abdullah Al Othaim Markets Co.
Abdullah Al Othaim Markets Co.’s (Al Othaim) board of directors approved, on April 18, 2021, to form a consortium with Allana International Ltd. and United Feed Manufacturing Co. to offer a joint purchase bid for a flour mill from the two offered for privatization by the Saudi Grains Organization (SAGO), according to a bourse filing.
The second as well as the fourth flour milling companies were offered for privatization, as per the request for proposal with qualified bidders, dated Sept. 13, 2020, by the National Center for Privatization & PPP (NCP).
The board’s decision is in line with the company’s integration as well as investment diversification strategy, in addition to its endeavors to contribute to the Kingdom’s food security.
In case the consortium is awarded, the relevant financial impact will be revealed, and the parties concerned will ink a joint venture deal under the umbrella of a holding company with equal ownerships among the consortium companies.
The acquisition is said to be financed by both internal resources of the consortium and credit facilities from banks.
The deal included no related parties, and updates will be duly revealed, the statement added. In January, National Agricultural Development Co. (NADEC) signed a non-binding memorandum of understanding (MoU) to form a consortium to jointly bid for acquisition of a flour mill. The flour mills are being offered for privatization by NCP and SAGO, Argaam reported.
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