Al-Othaim inks SAR 100 mln restaurant management JV with AGAD

03/02/2015 Argaam

Abdullah Al Othaim Markets Co. inked a binding partnership agreement with ​AGAD United ​Company ​for Investment to establish a limited liability ​entity with a share capital of SAR 100 million.


The new ​company will obtain exclusive license rights to open, operate, and manage Al Baik Restaurants in Al Qassim region.


Under the agreement, Al-Othaim will own 25 percent of capital, while AGAD will hold the remaining 75 percent stake.

The paperwork necessary for the new entity is expected to be complete on Feb. 15. The 25-year agreement will be automatically renewed for a similar period upon mutual consent, Al-Othaim added.

Both parties are finalizing necessary procedures to establish the company in compliance with the Saudi Arabian laws.

According to data available on Argaam, Al-Othaim, listed on Saudi Arabia’s bourse, has recently signed a non-binding memorandum of understanding (MoU) with AGAD, a sister of Al Baik Food Systems Company Ltd. The MoU was extended for co-founding the new entity. 

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