‎Tanmiah Food inks agreement to sell stake in two subsidiaries to US-Tyson International for SAR 262.6 mln

‎Tanmiah Food inks agreement to sell stake in two subsidiaries to US-Tyson International for SAR 262.6 mln

Tanmiah Food Co. signed an agreement, on July 5, with US-based Tyson International Holding Co. to sell an equity stake in its wholly-owned subsidiaries, Agricultural Development Co. (ADC) and Supreme Foods Processing Co. (SFPC), for $70 million (SAR 262.6 million).

Tyson International is a wholly-owned subsidiary of NYSE-listed Tyson Foods Inc.

The deal entails selling 15% and 60% of Tanmiah’s stake in ADC and SFPC, respectively, the company said in a bourse filing today, July 6.

The transaction will likely close shortly, subject to the closing conditions, including the required merger control and regulatory approvals.

This transaction and the strategic partnership between the two companies are part of Tanmiah’s ongoing efforts to meet the growing global demand for protein products.

The company will maintain an 85% ownership in ADC and a 40% ownership in SFPC.

The company hired Ernst & Young Corporate Finance Ltd. as the financial advisor and Baker & McKenzie as the legal advisor for the transaction.

Upon completion of the transaction, the shareholders shall enter into shareholders’ agreements concerning the ownership, management and operations of SFPC and ADC.

Following completion, the shareholders agreed that Tyson will contribute an amount of $21 million (or any other amount approved upon by the shareholders) in consideration for newly