SAGO issues new investor guidelines for privatization plans

Riyadh-based Saudi Grains Organization (SAGO) has issued preliminary guidelines on the qualification of potential bidders for state-owned grain mills under the planned privatization program.

“Only qualified investors can take part in the bidding process,” SAGO said in a statement, adding that full details about qualification requirements will be published later on.

Under the preliminary rules, the bidder should be either an individual entity, in which Saudi investors own a majority stake, or a consortium of a maximum of five firms, with the majority from Saudi Arabia.

Bidders should be operating in milling activities, the statement added.

Potential investors have to show strong financial performance over the last three years at least.

In November 2015, SAGO transferred the ownership of four of its flourmill companies to the Public Investment Fund, Argaam earlier reported.

HSBC Saudi Arabia was hired to advise on the privatization process.