DUBAI: Abu Dhabi plans to combine two food and beverage companies to create a new national champion in the sector, as part of consolidation efforts in the oil-rich emirate led by ADQ, a state-owned holding company.
Industrial conglomerate Senaat, owned by ADQ, has submitted a non-binding offer to the board of Agthia Group, an Abu Dhabi-listed food company, to transfer the majority of Al Foah Company into Agthia, ADQ said on Tuesday.
Al Foah, owned by Senaat, is the world’s largest date processing and packaging company.
“The proposed transaction would combine two leaders in their complementary food and beverage product categories to create one of the top 10 consumer F&B players in the MENA region,” ADQ said in a statement.
The combined entity would become a “domestic champion” in water, dates, flour, and animal feed, it said.
According to the proposal, Senaat would transfer the entire issued share capital of Al Foah to Agthia in exchange of a convertible instrument issued by Agthia to Senaat and convertible into 120 million ordinary shares of Agthia after the transaction is closed.
The price at which the convertible instrument will convert would be 3.75 dirhams per share, implying an equity value of 450 million dirhams ($122.52 million) for Al Foah, ADQ said.
After the transaction, Senaat would own 59.17 percent of the entire issued share capital of Agthia, up from the 51 percent it currently owns.
ADQ, which was established in 2018, owns strategic assets such as Abu Dhabi Ports, Abu Dhabi Airport and bourse operator ADX. It has also built up a portfolio of food and agriculture businesses and recently took a 22 percent stake in Dubai-based courier Aramex.
Abu Dhabi has seen some of its largest firms merge in the last few years in response to an earlier oil price slump.
Efforts have intensified this year, with deals including the consolidation of two Abu Dhabi utilities under ADQ and the combination of national contracting firms in the oil and gas services sector.
Abu Dhabi to create food and beverage giant under ADQ
https://arab.news/8fp3c
Abu Dhabi to create food and beverage giant under ADQ
- Senaat would own 59.17 percent of the entire issued share capital of Agthia, up from the 51 percent it currently owns
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
