UAE’s Agthia board approves acquisition of 80% stake in Nabil Foods

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The board of Abu Dhabi-based food and beverage company Agthia Group has approved the acquisition of a controlling stake in Jordan’s Nabil Foods.

The UAE firm is looking to buy 80 percent of the Jordanian enterprise that specialises in frozen and chilled meat products. The majority, 60 percent of the stake, will be acquired from Abu Dhabi Development Holding Company (ADQ) and a further 20 percent from Ideal Holding.

“This acquisition will be a key part of Agthia’s growth plans, providing us with presence in Jordan for the first time while contributing to a stronger financial profile, wider regional access, enlarged asset base, and enhanced financial performance and profitability,” said Alan Smith, chief executive officer of Agthia Group.

In a statement on Thursday, the company confirmed that its Board of Directors has approved the acquisition and will now call for a general assembly for shareholders to vote on the proposal.

If it pushes through, the transaction will mark Agthia’s entry into the processed protein industry.

“Following the receipt of shareholder and remaining regulatory approvals, Agthia would acquire an 80 percent stake in Nabil Foods, including a 60 percent stake acquired from ADQ… in exchange for a convertible instrument, as well as a further 20 percent stake acquired from Ideal Holding Limited in exchange for cash,” the statement said.

The fixed price at which the convertible instrument will convert into share in Agthia is 5.50 dirhams per share ($1.50).

Nabil Foods has a processing capacity of 43,000 tonnes per year and 600 individual product lines distributed in more than 20 local and international markets.

Early this year, Agthia marked the completion of its merger with date processing and packaging firm Al Foah.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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