Al-Othaim establishes new company to manage Qassim region's Al Baik restaurants

Abdullah Al Othaim Markets Co. has established Al-Woustah Company for Food Services LLC to manage its Al Baik Restaurants in Saudi Arabia’s Al Qassim region.

According to data available on Argaam, Al-Othaim had earlier inked a binding partnership agreement with AGAD United Company for Investment (AGAD) to found a limited liability company with a share capital of SAR 100 million. The new entity will obtain exclusive licensing rights to open, operate, and manage the Al Baik restaurants.

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

The newly-established entity is expected to open in the second quarter of 2015, said the foodstuff retailer in a statement to Tadawul, Saudi’s bourse.

Al-Woustah’s first fiscal year only will begin from the date of commercial registration to Dec. 31. Al-Othaim said it is not expecting a material financial impact from this investment in 2015.