Tanmiah Food signs SAR 200 mln poultry JV agreement

Logo of Tanmiah Food Co.

Tanmiah Food Co. announced the signing of a shareholders' agreement between its wholly-owned subsidiary, Desert Hills Veterinary Services Co. (DHV), and MHP SA to establish a joint venture (JV). 

This partnership will see DHV and MHP investing more than SAR 200 million in developing and operating breeding facilities with the capacity of more than 1 million parent poultry to produce approximately 175 million hatching eggs annually, state-of-the-art hatcheries, and a poultry feed mill, Tanmiah Food said in a statement to Tadawul. 

DHV will hold a 55% stake in the JV, while MHP will have the remaining 45%, the statement added.

Tanmiah stressed that the JV establishment is subject to the necessary regulatory approvals, including the approval of the General Authority for Competition and other applicable jurisdictions and authorizations.

The financial impact of the deal and any material developments will be announced in due course, the company added.

In February, the company signed a strategic partnership contract for food development with MHP, to establish a JV with an aim to develop and operate poultry breeding facilities, Argaam earlier reported.