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US-based Tyson International Holding Co., a wholly owned subsidiary of Tyson Foods Inc., is acquiring a stake in two of Saudi-based Tanmiah Food Co.’s wholly owned subsidiaries, Agricultural Development Co. (ADC) and Supreme Foods Processing Co. (SFPC), for $70 million.
Tanmiah will sell 15 percent of its shareholding in ADC and 60 percent in SFPC to Tyson, the Tadawul listed food company said in a bourse filing on Wednesday.
Following the transaction, Tanmiah will maintain an 85 percent ownership in ADC and 40 percent ownership in SFPC.
After the transaction is complete, the shareholders have agreed that:
- Tyson will contribute $21 million in consideration for newly issued shares in SFPC.
- Tanmiah will contribute $14 million in consideration for newly issued shares in SFPC, to fund the expansion of additional processing capacity of SFPC.
The transaction closing is subject to customary closing conditions, including any required merger control and related approvals.
The strategic partnership with Tyson is part of Tanmiah's ongoing efforts to meet the growing global demand for protein products, it added.
(Writing by Brinda Darasha; editing by Seban Scaria)
