Dubai: The world's biggest dates processing company is now owned by another Abu Dhabi company as part of a Dh450 million deal.
Al Foah Company, which is also the biggest dates packaging company, will combine with Agthia Group after the latter's shareholders approved the transaction to go ahead. It is expected to be completed before year-end, and will position Agthia as a Top 10 F&B company in the Middle East.
Currently, Al Foah is wholly owned by Senaat (or General Holding Corp.). Agthia Group will be 59.17 per cent owned by Senaat after the transaction.
"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," said Khalifa Sultan Al Suwaidi, Chairman, Agthia Group.
The combined group will have the scale - and "ambition" - to support future expansion plans, Agthia said in a statement. It will further consolidate the company's position as a "national and regional leader in four key food and beverage product lines, including water, dates, flour, and animal feed".
Alan Smith, CEO of Agthia Group, said: “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."
Agthia has also been picking up new assets elsewhere in the Gulf, becoming the full owner of Al Faysal Bakery in Kuwait.
* This will be by issuing convertible instruments with a nominal value of Dh1 each in an aggregate amount of Dh450 million. These shall be convertible immediately following completion of the transaction, into 120 million ordinary shares of Dh1 each in the capital of Agthia.
* The price at which the convertible instrument will convert into new Agthia shares is Dh3.75 per share. The issued share capital of Agthia will increase from Dh600 million to Dh720 million.