Agthia Group’s Board of Directors approves strategic combination with Al Foah

Agthia Group’s Board of Directors approves strategic combination with Al Foah

  • Agthia’s Board recommends to shareholders an offer to combine the world’s largest dates processing and packaging company from SENAAT
  • Transaction will expand the group’s product portfolio and international footprint

Abu Dhabi, UAE, November 9, 2020 – Agthia Group PJSC, a leading food and beverages company and part of ADQ – one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s economy – today announced that its Board of Directors has agreed to proceed with a strategic transaction to combine with Al Foah Company LLC, the world’s largest dates processing and packaging company based in Abu Dhabi.

As a result, the Board recommends to Agthia shareholders that they approve the offer received from General Holding Corporation PJSC (“Senaat”) on October 6 to combine with its wholly owned subsidiary Al Foah.

The key terms of Senaat’s offer are to transfer Al Foah (excluding its organic date farm in Al Ain) to Agthia in consideration for the issuance by Agthia to Senaat of a convertible instrument, into 120 million ordinary shares in Agthia upon closing of the transaction. The fixed price at which the instrument will convert into shares in Agthia is AED 3.75 per share, implying an equity value of AED 450 million for Al Foah. Following the conversion, Senaat would own 59.17% of the entire issued share capital of Agthia, up from the 51% it currently owns in the Group.

Alan Smith, Chief Executive Officer of Agthia Group, said: “Agthia remains committed to our strategy of growing operations across regional markets, expanding market share and diversifying our product offerings. We see the transaction with Al Foah as a key enabler to accelerate our ambitions, bringing together two UAE leaders in their respective food and beverage product categories to create one of the top 10 consumer F&B players in the MENA region by revenue.

“We expect the deal to be immediately accretive to Agthia’s shareholders with its significantly value-enhancing potential. It will serve to further strengthen the company’s balance sheet, offering multiple revenue and cost synergies as well as the potential for further international expansion in the fast-growing date market.”

During the Last Twelve Months (LTM) ending June 30, 2020, Al Foah achieved revenues of AED 470 million, EBITDA of AED 96 million, and net income of AED 77 million. The combined entity will become a domestic champion in four essential categories: water, dates, flour, and animal feed. As a more robust, diversified consumer-centric food and beverage player, Agthia will have an even stronger platform to compete across the MENA region.

The transaction will now be put forward to Agthia’s General Assembly and is subject to regulatory and shareholder approvals.

END

About Agthia

Agthia Group is a leading Abu Dhabi based food and beverage company. Established in 2004, the Company is listed on the Abu Dhabi Securities Exchange (ADX) and has the symbol “AGTHIA”. Through Senaat, Agthia is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.

The Company’s assets are located in the UAE, Saudi Arabia, Kuwait, Oman, Egypt and Turkey. Agthia offers a world class portfolio of integrated businesses providing high quality and trusted food and beverage products for customers and consumers across the UAE, GCC, Turkey and the wider Middle East. More than 4,000 employees are engaged in manufacturing, distribution and marketing various food and beverage products: Water (Al Ain, Al Bayan, Alpin Natural Spring Water, Bambini); Flour (Grand Mills); Animal Feed (Agrivita); Juices (Al Ain Fresh, Capri Sun); Dairy (Yoplait); Processed Food (Al Ain Tomato Paste, Frozen Vegetable); Ambient and Frozen Bakery (Grand Mills). For more information: http://www.agthia.com | corpcoms@agthia.com | Tel: 971 2 506 0600.

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