Savola has previously announced its intention to distribute its entire 34.52% shareholding in listed Almarai to its shareholders, providing them direct exposure to Almarai’s growth potential and future dividends. Savola said that Almarai has been one of its most successful investments to date, with the value of its investment increasing 100-fold since the initial investment in 1991.

Almarai has a current market cap of SR60bn, suggesting the Savola stake is valued at around SR20.7bn. In a presentation, Savola said the value of the stake in Almarai has grown from SR18.6bn five years ago to an expectation of SR19.93bn currently.

Savola’s capital increase will comprise 600m new shares on a 1.1236-for-1 basis at SR10. Both the rights issue and distribution of Almarai shares still require shareholder approval at an EGM, with the share distribution to follow the rights issue.

Savola has a SR16bn market capitalisation. Savola stock was up nearly 22% year-to-date as of Wednesday’s SR45.65 close, although shares closed higher at SR57.70 in early March. Almarai shares are up just over 8% year-to-date.

Shares in Savola were down 1.97% at SR44.75 just after midday in London on Thursday, with Almarai fractionally down at that time.

Savola said earlier this year that it is also considering a listing of its Panda grocery retailer business that reported SR700m revenue and SR100m Ebitda for 2023.

Source: IFR