Savola announces intention to distribute its entire 34.52% stake in Almarai to its shareholders and launch SAR6bln rights issue

Savola announces intention to distribute its entire 34.52% stake in Almarai to its shareholders and launch SAR6bln rights issue

- Distribution will be preceded by a SAR 6.0 billion rights issue, substantially strengthening Savola’s financial position and funding for long-term growth opportunities.

- Savola will continue to focus on growing its market-leading food and retail companies and continue to assess strategic options to create further shareholder value.

Jeddah, Kingdom of Saudi Arabia: Savola Group (“Savola”) has announced its intention to proceed with the distribution of its entire 34.52% shareholding in Almarai, the Middle East’s leading food and beverage company, to eligible Savola shareholders following a SAR 6.0 billion rights issue. Savola’s Board of Directors has approved this direction to commence preparation in relation to the transaction, which is subject to regulatory authorities’ approvals and thereafter EGM approval.

The objective of the distribution of the Almarai shares owned by Savola Group is to unlock value for Savola’s shareholders, who will benefit from direct exposure to the growth potential and future dividend capacity of Almarai, one of the region’s leading food companies. Almarai has been one of the most successful investments for Savola Group to date.

The rights issue will allow Savola to strengthen its financial position and continue to invest in the growth of its portfolio, while paying down debt and enabling the distribution