Saudi Arabia sold two flour mills to consortiums comprising National Agriculture Development Co. and Abdullah Al Othaim Markets Co. in deals that have a combined value of $800 million. The shares of both companies climbed.
The sales were part of Saudi Grains Organization’s privatisation program in which it offered four mills, according to a statement. The state-run company last year sold its first and third mills to Saudi and Gulf investors.
HSBC Holdings Plc was the adviser in all transactions.
Details:
- Second mill sold to a consortium comprising National Agricultural Development, Olam International, Sulaiman Abdulaziz AlRajhi International, and Abdulaziz AlAjlan & Sons
- Sale price: 2.14 billion riyals
- Fouth mill sold to a consortium comprising Abdullah Al Othaim Markets, Allana International Alliance, and United Feed Manufacturing
- Sale price: 859 million riyals
Saudi Arabia has embarked on a privatization program that includes the sale of stakes in sectors ranging from utilities to soccer clubs, flour mills and medical facilities as part of a broader move to wean its economy off oil.
National Agriculture’s shares climbed as much as 5.9 percent in Riyadh, rising to the highest level since October 2006. Abdullah Al Othaim rose as much 3.2 percent.
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