Al Othaim says flour mill acquisition to be financed from consortium’s self-resources, local bank debts

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Abdullah Al Othaim Markets Co. (Al Othaim) said the acquisition of the Fourth Milling Co. (MC4) will be financed from a combination of self-financing by the consortium members and local bank debts.

On April 20, 2021, Al Othaim’s consortium with Allana International Ltd. and United Feed Manufacturing Co. was awarded the project by the National Center for Privatization & PPP (NCP), to acquire the Fourth Milling Co. (MC4).

MC4 was sold to the consortium for a total value of SAR 859 million, Al Othaim said in a bourse statement, expecting the deal contract to be signed on June 20.

A joint venture agreement is to be signed to organize relationships among the consortium members through a holding company that will be incorporated by the consortium members with equal shares.

There are no related parties to the deal, the statement added.

Al Othaim board of directors approved, on April 18, to form a consortium with Allana International Ltd. and United Feed Manufacturing Co. to offer a joint purchase bid for a flour mill from the two offered for privatization by the Saudi Grains Organization (SAGO), Argaam reported.

NCP announced on April 20 the completion of the second and last phase of the privatization of the Second Milling Co. (MC2) and Fourth Milling Co. (MC4) to strategic investors in the private sector.

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