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
Marine insurance companies are considering canceling, repricing policies in the Middle East
RIYADH: Marine insurance companies are considering canceling or repricing policies in the Middle East, according to the Financial Times
This comes after the US and Israeli strikes on targets inside Iran, followed by missile attacks and retaliatory military actions in several countries in the region.
Marine brokers expect insurance premiums for ships to rise by up to 50 percent, given the region’s classification as a “war zone.”
Ship owners are considering rerouting their vessels to avoid the Strait of Hormuz and reduce risks to crews and cargo.
20% of the global oil supply passes through the Strait of Hormuz.
Regarding oil prices, a rise is expected as 20 percent of global oil supply passes through the Strait of Hormuz, amid concerns about continued tensions in the region.
Air traffic in the Middle East was severely disrupted after several countries closed their airspace completely or partially, while regional and international airlines suspended or rescheduled flights.
On the morning of March 1st, the Iranian capital, Tehran, witnessed several large explosions following Israel's announcement of what it described as a “preemptive strike.”
Flights to countries in the region suspended due to attacks
In a video message, US President Donald Trump announced that the US had begun “major combat operations” in Iran, asserting that the goal was to defend the American people by neutralizing what he described as the “imminent threat” from the Iranian regime.
Several regional and international airlines announced the suspension of their flights to some countries in the region due to the attacks.
These military developments come at a time when major shipping companies had already avoided the Red Sea and Suez Canal routes due to security tensions, reverting to the Cape of Good Hope route, which increases shipping costs and puts pressure on global supply chains.
With the closure of airspace in several countries in the region, the risk of disruption to air traffic and trade is increasing, while oil markets are watching closely for any signs of potential supply disruptions from a region that is one of the world's most important energy production hubs.
