Abu Dhabi-based leading food and beverage company, Agthia Group has completed its strategic acquisition of Al Foah, the world’s largest date processing and packaging company.
With the merger of Al Foah into Agthia as a strategic business unit, the f&b company has instantly become the regional market leader in four essential categories including water, dates, flour and animal feed, along with diversified international exposure within the date category.
The transaction was first proposed by UAE’s largest industrial investment General Holding Corporation (Senaat) to the Agthia Board of Directors last year and then received approval from Agthia’s shareholders.
Later, Senaat transferred Al Foah’s business excluding its organic date farm in Al Ain, to Agthia in exchange for 120 million new shares through the issuance of a convertible instrument.
Senaat now owns 59.17 percent of the entire issued share capital of Agthia, up from the 51 percent it owned before the deal. Senaat is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises over key sectors of the emirate’s economy.
“The successful consolidation of Al Foah’s business has created a true F&B regional powerhouse and an immediate UAE champion in the exciting date market. Agthia has a winning formula that enables us to take advantage of opportunities such as the Al Foah transaction,” said Khalifa Sultan Al Suwaidi, Chairman, Agthia Group and Chief Investment Officer, ADQ.
Diversification and expansion
The company stated that it has a clear plan of expansion and diversification of geographies and products, supported by a robust balance sheet and it aims to seek organic and inorganic growth opportunities.
“With the successful close of this transaction, we have fast-tracked our ambitions to become amongst the top 10 F&B companies in the MENA region. Additionally, as a leader in the global date market, the integration of Al Foah as a strategic business unit of Agthia enables us to immediately become a regional champion and a serious competitor on a global scale in a very promising food category,”
The world’s largest dates company, Al Foah subsidiary to Senaat was established in 2005 by the Abu Dhabi Executive Council intending to make the dates industry of UAE a financially viable and globally compatible business. The company exports its products to over 45 countries including the top 10 markets of dates in the globe.