Monday 16 October 2023

#Saudi Savola Said to Weigh $5.4 Billion Almarai Stake Sale - Bloomberg

Saudi Savola Said to Weigh $5.4 Billion Almarai Stake Sale - Bloomberg

Almarai Co.’s top investor is exploring options for its $5.4 billion holding in the Middle East’s largest dairy firm, according to people with knowledge of the matter, in what could be one of the region’s biggest merger and acquisition deals.

Stakeholders at Saudi Arabian food-processing firm Savola Group are working with US investment bank Moelis & Co. to find potential suitors for part or all of its 35% stake in Riyadh-based Almarai, the people said, asking not to be identified because the information is private.

Shares in Savola jumped almost 10%, the most since March 2020. Almarai stock fell more than 2% to the lowest level since June at 2.28p.m. in Riyadh.

Talks are at an early stage and Savola may decide not to sell, the people said. Representatives for Savola and Almarai didn’t immediately respond to requests for comment. A representative for Moelis declined to comment.

Savola’s stake in Almarai is worth about $5.4 billion based on Monday’s trading. At roughly $5 billion, Savola’s own market capitalization is slightly lower than that. The kingdom’s Public Investment Fund has a 16% holding in Almarai via a subsidiary.

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