Agthia to Become a Regional F&B Champion as Shareholders Approve Al Foah Transaction

Agthia to Become a Regional F&B Champion as Shareholders Approve Al Foah Transaction

Transaction is expected to close by the end of 2020, creating a top-10 regional F&B group 59.17% owned by Senaat, part of ADQ

Abu Dhabi, UAE, November 30, 2020 – Agthia Group PJSC, a leading food and beverages company owned by General Holding Corporation PJSC (Senaat) – 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 – held its 15th General Assembly Meeting today, during which the company’s shareholders approved the proposed strategic combination with Al Foah Company LLC, the world’s largest date processing and packaging company.

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. Furthermore, the deal will fortify Agthia’s position as a national and regional leader in four key food and beverage product lines, including water, dates, flour, and animal feed.

Khalifa Sultan Al Suwaidi, Chairman, Agthia Group and Chief Investment Officer, ADQ, said: “At Agthia, we continuously seek to diversify and enhance the value of our portfolio. Our transactions with Al Foah and, as recently announced, Kuwait’s Al Faysal Bakery, will see us joining forces with two highly complementary companies. 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, Chief Executive Officer of Agthia Group, said: “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. Moreover, the combination with Al Faysal gives us an important foothold in Kuwait via one of its leading bakery companies. We look forward to creating further shareholder value, building meaningful partnerships, and capturing new opportunities in the near future.”

Under the terms of the agreement received on October 6 from General Holding Corporation PJSC (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 AED 1 each in an aggregate principal amount of AED 450,000,000. These shall be convertible, immediately following completion of the transaction, into 120,000,000 ordinary shares of par value AED 1 each in the capital of Agthia.

The price at which the convertible instrument will convert into new Agthia shares is AED 3.75 per share. The issued share capital of Agthia will increase from AED 600,000,000 to AED 720,000,000 as a result.

The transaction is expected to be completed by the end of 2020, after which Agthia Group will be 59.17% owned by Senaat, part of ADQ.

Agthia recently submitted a binding offer to fully acquire Al Faysal Bakery and Sweets WLL, a Kuwait-owned bakery company established in 1991 with a diverse range of consumer products including mini pizzas, cupcakes and pastries.

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.

About Al Foah Company

Though Senaat, Al Foah,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.  Al Foah was established in 2005 by the Abu Dhabi government to take responsibility for a number of date production and processing assets, including an organic date farm in Al Ain (excluded from the transaction), two dates processing factories in Al Saad and Al Marfa and a number of dates receiving centres across the UAE. Al Foah’s headquarters are located in Al Ain.

Al Foah’s product portfolio consists of a wide range of high-quality UAE-grown whole dates, value-added dates (stuffed and chocolate coated) and date-based products including date syrup, date paste and date halwa. Al Foah has processed and sold on average  c.108,000 metric tons annually over the last four years, of which 90% is exported to 45 countries across the world, including the top ten global markets for dates such as India, Oman, Bangladesh, Morocco, Indonesia, Jordan and Sri Lanka.

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