Agthia Group, one of the leading food and beverages companies in the region received approval from its shareholders to tie up with Al Foah Company LLC, the world’s largest date processing and packaging company.
The approval came during the 15th General Assembly Meeting of Agthia owned by Senaat General Holding Corporation subsidiary to ADQ, one of the region’s largest holding companies with a wide portfolio of major business from some of the key sectors of Abu Dhabi’s economy.
The merger will strengthen the capabilities across the value chain to aid in the future expansion plans of both the companies to become one of the top ten consumer food and beverage groups in the Middle East.
The deal will help Agthia to secure its position as a national and regional leader in the four major food and beverage product lines, including water, dates, flour and animal feed.
Speaking on the new tie-up Khalifa Sultan Al Suwaidi, Chairman of Agthia Group and Chief Investment Officer of ADQ stated that, “we continuously seek to diversify and enhance the value of our portfolio. 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.”
Further Mr. Al Suwaidi added that the company always welcomes every opportunity that will enable it to strengthen the food and beverage industry of the UAE and other regions.
“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 agreement Senaat will hand over the entire issued share capital of its subsidiary Al Foah to Agthia, in return for the issuance of mandatory convertible instruments with a nominal value of $0.27 each in an aggregate principal amount of $122.5 million. These shall be convertible, immediately after completion of the transaction, into 120 million ordinary shares of a par value of $0.27 each in the capital of Agthia.
Al Foah Company
The world’s largest dates company, Al Foah subsidiary to Senaat was established in 2005 by the Abu Dhabi Executive Council with an aim 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.