SAGO’s privatization plans ‘underway’, says Al Fares

The privatization program of Saudi Grains Organization (SAGO) is “underway” with many investors showing interest in buying milling firms to entering that sector, director general of SAGO, Ahmed Al Fares, said in a statement Thursday.

A workshop was organized for potential buyers and other one-to-one meetings will follow, which signals the private sector’s interest in investing in flour production.

Meanwhile, Abdulrahman Al Fadhli, the Kingdom’s minister of water and agriculture and SAGO’s chairman highlighted the importance of qualifying investors for investments in the flour sector, in line with the Saudi Vision 2030.

In November 2015, SAGO transferred the ownership of four of its flourmill companies to the Public Investment Fund, Argaam earlier reported.

HSBC Saudi Arabia was hired to advise on the privatization process.

Last March, a consortium of Saudi’s food producer Almarai and US-based agriculture giant Archer Daniels Midland Co. (ADM.N) was said to be among potential bidders for SAGO’s four milling companies.