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Agthia approves acquisition of Nabil Foods

Dubai - The acquisition would position Agthia at the forefront of the fast-growing processed protein industry

Agthia Group has announced that its board of directors met and approved the acquisition of a majority stake in Nabil Foods after receiving certain key regulatory approvals.

Nabil Foods is one of the leading regional producers of frozen and chilled processed protein products distributed in more than 20 markets.

Following receipt of further regulatory approvals, Agthia’s board of directors agreed it will now call for a general assembly where shareholders will vote on the acquisition of Nabil Foods. This transaction would mark Agthia’s first entry into the processed protein industry through a well-established brand with a successful track record of over 75 years.

Alan Smith, CEO of Agthia Group, said: “Today’s board meeting and calling for a General Assembly in due course are important milestones in the acquisition of Nabil Foods – a significant transaction that will place Agthia at the forefront of a fast-growing industry, expand its product portfolio and cement its position as a leading regional FMCG player. 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.”

Following the receipt of shareholder and remaining regulatory approvals, Agthia would acquire an 80 per cent stake in Nabil Foods, including a 60 per cent stake acquired from ADQ, one of the region’s largest holding companies, in exchange for a convertible instrument as well as a further 20 per cent stake acquired from Ideal Holding Limited 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.

Nabil Foods has a processing capacity of 43,000 tonnes per year and 600 individual product lines distributed in more than 20 local and international markets, which 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.

business@khaleejtimes.com