Shareholders of UAE-based food major Agthia Group have approved a proposed merger with Al Foah Company, the world’s largest date processing and packaging company.
The backing was given at Agthia’s 15th general assembly meeting, a statement said.
Agthia said the combined group will have the “scale, ambition, and strong capabilities across the value chain to support its future expansion plans as one of the top ten consumer food and beverage groups in the Middle East”.
Khalifa Sultan Al Suwaidi, chairman, Agthia Group and chief investment officer of parent company ADQ, said: “The shareholders’ approval of the combination with Al Foah supports Agthia’s vision and our plans to expand the offering of premium quality products in our portfolio. We embrace opportunities that allow us to strengthen the food and beverage sector in the UAE and wider region, and also emphasise our commitment to an outstanding customer experience.”
Alan Smith, CEO of Agthia Group, added: “The strategic combinations with Al Foah and Al Faysal are two of our key achievements of the current financial year, reinforcing Agthia’s vital role in the region’s food and beverages sector. Upon completion of the transaction with Al Foah, the group will immediately rise to become a regional champion in the date market with substantial global prospects, diversifying its product portfolio and expanding its international footprint.”
Under the terms of the agreement received on October 6 from General Holding Corporation (Senaat), Senaat will transfer the entire issued share capital of its wholly-owned subsidiary Al Foah to Agthia, in exchange for the issuance of mandatory convertible instruments with a nominal value of AED1 each in an aggregate principal amount of AED450 million. These shall be convertible, immediately following completion of the transaction, into 120,000,000 ordinary shares of par value AED1 each in the capital of Agthia.
The issued share capital of Agthia will increase from AED600 million to AED720 million as a result.
The transaction is expected to be completed by the end of 2020, after which Agthia Group will be 59.17 percent owned by Senaat, part of ADQ.
Source:https://www.arabianbusiness.com/retail/455292-agthia-shareholders-approve-merger-plan-with-dates-giant-al-foah