The Saudi food producer Savola Group has announced completing the acquisition of a 51% stake in the UAE-based Al Kabeer Group at a value of SAR 56.5 million ($150.8 million).
Savola also said it had received the approval of the General Authority for Competition regarding the transaction through transferring the acquired stake to Good Food Co. Ltd, according to a filing to the Saudi Stock Exchange (Tadawul).
Good Food Co. Ltd is a wholly-owned subsidiary of Savola, Saudi Arabia’s largest food products company.
“The financial results of Al Kabeer Group of Companies, through Good Food Company Ltd., will be consolidated in the fourth quarter of 2018 financials of the Savola Group,” the statement added.
Savola further indicated that the deal’s value rose to SAR 571 million due to registering higher profits by Al Kabeer Group of Companies after issuance of the combined financial statements.
On 6 May, the Tadawul-listed firm announced the acquisition of a 51% stake in Al Kabeer Group, while it added that the transactions would be finished within six months as of the date of signature.
Savola Group last reported turning to loss during the third quarter of 2018, incurring SAR 50.7 million losses during Q3-18, against a profit of SAR 829 million in Q3-17.
During the first nine months of 2018, Savola Group’s net profit after calculating Zakat and Tax plunged 99.4% to SAR 5.6 million, from SAR 1.06 billion a year earlier.