Saudi Arabia Sells Flour Mills for $800 Million; Shares Rise
(Bloomberg) -- Saudi Arabia sold two flour mills to consortiums comprising National Agriculture Development Co. and Abdullah Al Othaim Markets Co. in deals that have a combined value of $800 million. The shares of both companies climbed.
The sales were part of Saudi Grains Organization’s privatization program in which it offered four mills, according to a statement. The state-run company last year sold its first and third mills to Saudi and Gulf investors.
HSBC Holdings Plc was the adviser in all transactions.
- Second mill sold to a consortium comprising National Agricultural Development, Olam International, Sulaiman Abdulaziz AlRajhi International, and Abdulaziz AlAjlan & Sons
- Sale price: 2.14 billion riyals
- Fouth mill sold to a consortium comprising Abdullah Al Othaim Markets, Allana International Alliance, and United Feed Manufacturing
- Sale price: 859 million riyals
Saudi Arabia has embarked on a privatization program that includes the sale of stakes in sectors ranging from utilities to soccer clubs, flour mills and medical facilities as part of a broader move to wean its economy off oil.
National Agriculture’s shares climbed as much as 5.9% in Riyadh, rising to the highest level since October 2006. Abdullah Al Othaim rose as much 3.2%.
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