Abu Dhabi's ADNH Catering to raise stake in Saudi venture to 50%, Compass to exit
Saudi venture will soon be rebranded as UK's Compass exits
Dubai: Abu Dhabi’s ADNH Catering will soon have 50% stake of its subsidiary in Saudi Arabia, after reaching a deal with partners Compass Group International and Al-Rushaid Petroleum Investment Co. ADNH Catering had earlier held 30% in the Saudi joint venture, called Compass Arabia.
The name of the company will change once all the stake swap transactions are done.
The deal, likely to be completed in Q1-2025, will also see Al-Rushaid Petroleum Investment Co.’s end up the remaining 50% in the Saudi venture, while Compass will make a full exit.
ADNH Catering, which listed on ADX this year, had done a similar deal with UK’s hospitality services firm Compass in their UAE venture. That too saw Compass make an exit.
It was in 2012 that ADNH Catering and Compass launched the Saudi venture.
“We are seeking to build out from our market-leading position in the UAE to expand ADNH Catering Group’s operations across various business segments and provinces in the kingdom, including Riyadh,” said Clive Cowley, CEO of ADNH Catering Group.
“Today marks an important milestone for our business, maintaining momentum in the execution of our strategy as set out at the time of our IPO.” (The stock float was completed October 23.)
On the ADX, ADNH Catering is trading at Dh0.92, slightly off the IPO price of Dh0.96. The company has a near 30% share of the UAE market when it comes to catering services, with government entities and big private sector players as clients. It also operates multiple central kitchens in the UAE.