Stock Agthia
Agthia has been on a acquisition and consolidation spree in recent months. Nabil Foods is the latest. Image Credit: Supplied

Dubai: Abu Dhabi Agthia Group will own 80 per cent in Jordan Nabil Foods, one of the biggest names in the region for frozen foodstuff. This includes the 60 per cent Agthia will pick up from another Abu Dhabi entity, ADQ, for Dh394 million.

All of the regulatory approvals have been received for the deal to proceed, which was first announced last month. Agthia has in recent months been busy with acquisitions and mergers, including that done with Al Foah - the world's biggest dates processing company. As for Nabil Foods, its products are distributed in more than 20 markets.

“This acquisition will be a key part of Agthia’s growth plans, providing us with presence in Jordan for the first time while contributing to a stronger financial profile, wider regional access, enlarged asset base, and enhanced financial performance and profitability,” said Alan Smith, CEO of Agthia Group.

Nabil has capacity and reach
Nabil Foods has a processing capacity of 43,000 tons per year and 600 individual product-lines that are distributed in more than 20 markets.

This will enable Agthia to "expand its product offering and immediately access new revenue streams. The acquisition is expected to drive tangible short- and long-term value for all stakeholders, with cost and revenue synergy opportunities and cross-market distribution throughout the region," it said in a statement.

Picking up the 60%

The 60 per cent stake from ADQ will be acquired via a convertible instrument, while a further 20 per cent stake will be picked up from Ideal Holding Ltd. in exchange for cash. The fixed price at which the convertible instrument will convert into shares in Agthia is Dh5.50 per share, implying an equity value of Dh394 million for a 60 per cent stake in Nabil Foods.