Saudi Arabia Sells Flour Mills for $800 Million; Shares Rise

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.

Details:

  • 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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