30/03/2018 05:30 AST
Saudi Arabia-based Al Safi Holding, a unit of Al Faisaliah Group, has sold its shares in Al Safi Danone Company (ASD), a producer of dairy and juice products, to National Agricultural Development Co (Nadec).
Baker McKenzie, a leading global law firm, has acted for Al Safi Holding in this deal, said a statement.
The business combination of Nadec and ASD, a joint venture between Al Safi Holding and French food company Danone, was announced on March 25, it said.
As a result, Nadec will buy all the shares in ASD from Al Safi Holding and Danone Dairy Investments Indonesia and ASD shareholders will own 38.8 per cent of Nadec. The value of the transaction is undisclosed, it added.
The deal will help consolidate Nadec's and ASD's business in the dairy industry in Saudi Arabia, reinforce their position to create a leading regional dairy and beverage player, and extend their geographic reach, said a statement.
Riyadh partner Karim Nassar led the team, working with partner David Monnier and associate Alia AlSalloum.
Nassar said: "The combination of Nadec and ASD marks a milestone as the first major consolidation in Saudi Arabia's dairy industry, as well as being one of the largest transactions announced this year."
"It reflects the consolidation trends we are seeing across all industry sectors in the Middle East, and underlines the continuing development of Saudi Arabia's private sector in line with the nation's economic vision. We are delighted to have been able to support the Al Faisaliah Group in this landmark transaction," he added.
Ahmad Al Taher, Al Faisaliah Group's general counsel, said: "We would like to thank Baker McKenzie for their professionalism and efficiency. Nassar, Monnier and AlSalloum were able to simplify and articulate complicated legal matters while keeping commercial intentions at the forefront, and helping bring the transaction to a full and complete circle."
"Baker McKenzie's role was vital to the transaction and we look forward to working with them again," he added.
Nadec has a market capitalisation of SR3.2 billion ($853 million) and is 20 per cent owned by Saudi's Public Investment Fund, with the rest publicly traded on the Saudi bourse, it stated. -
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