The Emirate of Abu Dhabi intends to establish a new national entity in the food sector by merging two food and beverage companies.
According to Reuters, the holding said on Tuesday that its industrial group Industries had submitted a non-binding offer to the board of directors of Agthia Group listed on the Abu Dhabi Stock Exchange to transfer the majority of Al Foah to Agthia. .
and owned by Al Foah Asasan is the largest manufacturer and canning of dates in the world.
The holding said in a statement that the proposed offer will merge two leading companies in their fields from the complementary product categories for food and beverages to create one of the ten most important F&B entities in the MENA region. .
and added that the entity resulting from the merger will become a national hero in the fields of water, dates, flour and animal fodder.
and according to the proposal, Senaat will transfer the total issued capital shares of Al Foah to Agthia in exchange for issuing food for the benefit of Industrials convertible into 120 million ordinary shares in Agthia at Close the deal.
the holding said the price of the convertible instrument would be 3.75 dirhams per share, implying an equity value of 450 million dirhams ($ 122.52 million) for voucher.
After completing the deal, Senaat will own 59.17 percent of all issued capital for Foods, up from 51 percent it currently owns.
The Holding Company, founded in 2018, has strategic assets such as Abu Dhabi Ports, Abu Dhabi Airport, and the operating company of the Abu Dhabi Securities Exchange. It also established a portfolio of food and agricultural activities and recently acquired a 22 percent stake in Aramex for package delivery services.
Abu Dhabi has witnessed mergers of some of its largest companies in the past few years due to the decline in oil prices.
