Savola Group is selling its stake in Almarai to its shareholders after launching a SR6bn rights issue, the move is expected to increase the shareholders stake in Almarai, one of the region’s leading food companies. Despite the sale, Savola emphasized that it has been one of their most successful investments to date. The transfer of stake aims to boost earnings and pay down debt.
According to a report by Bloomberg, Savola has been intending to sell its stake since October 2023. Now, stakeholders will have the opportunity to directly benefit from the growth potential of Almarai. This landmark transaction is a first for both Savola and the Saudi capital market.
Additionally, Savola chairman Sulaiman A. K. Al-Muhaidib commented on the move, affirming that it will provide shareholders with direct exposure to one of the region’s most trusted food brands. The sale of its stake comes as Savola focuses on investing in the growth of its core food and retail businesses.
Furthermore, majority of Savola’s food investments are made through its subsidiary Savola Foods. In 2022, the investor acquired the Cairo-based baking group, Egyptian Belgian Company for Industrial Investments.
Almarai, on the other hand, experienced a 4.8% increase in revenue in 2023, amounting to SR19.6bn, with its operating profit also showing growth from SR2.3bn to SR2.7bn compared to the previous year.
