ABU DHABI, (UrduPoint / Pakistan Point News / WAM – 30th Nov, 2020) Agthia Group held its 15th General Assembly Meeting on Monday, during which the company’s shareholders approved the proposed strategic combination with Al Foah Company LLC, the world’s largest date processing and packaging company.
Aghhia is a food and beverages company owned by General Holding Corporation (Senaat) – part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s economy, said a statement issued by the company on Monday.
The combined group will have the scale, ambition, and strong capabilities across the value chain to support its future expansion plans, as one of the top ten consumer food and beverage groups in the middle East. The deal will fortify Agthia’s position as a national and regional leader in four key food and beverage product lines, including water, dates, flour, and animal feed.
Khalifa Sultan Al Suwaidi, Chairman of Agthia Group and Chief Investment Officer of ADQ, said, “At Agthia, we continuously seek to diversify and enhance the value of our portfolio. Our transactions with Al Foah and, as recently announced, Kuwait’s Al Faysal Bakery, will see us joining forces with two highly complementary companies. The shareholders’ approval of the combination with Al Foah supports Agthia’s vision and our plans to expand the offering of premium quality products in our portfolio.
“We embrace opportunities that allow us to strengthen the food and beverage sector in the UAE and wider region, and also emphasise our commitment to an outstanding customer experience.”
In turn, Alan Smith, CEO of Agthia Group, said, “Upon completion of the transaction with Al Foah, the Group will immediately rise to become a regional champion in the date market with substantial global prospects, diversifying its product portfolio and expanding its international footprint. Moreover, the combination with Al Faysal gives us an important foothold in Kuwait via one of its leading bakery companies. We look forward to creating further shareholder value, building meaningful partnerships, and capturing new opportunities in the near future.”
Under the terms of the agreement received on 6th October from Senaat, it will transfer the entire issued share capital of its wholly-owned subsidiary Al Foah to Agthia, in exchange for the issuance of mandatory convertible instruments with a nominal value of AED1 each in an aggregate principal amount of AED450 million. These shall be convertible, immediately following completion of the transaction, into 120 million ordinary shares of par value AED 1 each in the capital of Agthia.
Agthia recently submitted a binding offer to fully acquire Al Faysal Bakery and Sweets WLL, a Kuwait-owned bakery company established in 1991 with a diverse range of consumer products including mini pizzas, cupcakes and pastries.