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- Al Foah will operate as a strategic business unit within Agthia
Abu Dhabi, UAE - Agthia Group PJSC, a leading food and beverages company, today announced the successful completion of its strategic combination with Al Foah, the world’s largest date processing and packaging company based in Abu Dhabi.
With the integration of Al Foah into Agthia as a strategic business unit, Agthia has instantly become the domestic market leader in four essential food and beverage categories: water, dates, flour, and animal feed, in addition to having a diversified international exposure within the date category. As a more robust, diversified, and consumer-centric food and beverage player, Agthia will have an even stronger platform to compete across the MENA region and beyond.
The transaction – which was first proposed by General Holding Corporation PJSC (Senaat) to the Agthia Board of Directors in October 2020 and received approval from Agthia’s shareholders in November 2020 – saw Senaat transfer Al Foah’s business, excluding its organic date farm in Al Ain, to Agthia in exchange for 120 million new shares through the issuance of a convertible instrument. As a result, Senaat now owns 59.17% of the entire issued share capital of Agthia, up from the 51% it owned before the deal. Senaat is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s economy.
Khalifa Sultan Al Suwaidi, Chairman, Agthia Group and Chief Investment Officer, ADQ, said: “The successful consolidation of Al Foah’s business has created a true F&B regional powerhouse and an immediate UAE champion in the exciting date market. Agthia has a winning formula which enables us to take advantage of opportunities such as the Al Foah transaction. We have a clear roadmap for growth and diversification of geographies and products, underpinned by a robust balance sheet. Moreover, we are proud of our impeccable reputation for quality products and service, which is revered by peers and endorsed by our customers. We will continue to seek organic and inorganic growth opportunities to support our ambitions and to further strengthen the UAE’s food and beverage sector.”
Alan Smith, Chief Executive Officer of Agthia Group, said: “With the successful close of this transaction, we have fast-tracked our ambitions to become amongst the top 10 F&B companies in the MENA region. Additionally, as a leader in the global date market, the integration of Al Foah as a strategic business unit of Agthia enables us to immediately become a regional champion and a serious competitor on a global scale in a very promising food category. The global date market is exhibiting very encouraging market fundamentals with constructive demand and supply dynamics. As a very versatile superfood with immense nutritional value the opportunities in the date category are vast and exciting, and with the expertise of the Al Foah team and its extensive global reach to 45 international markets across the date market value chain, we are closer to achieving our strategic priorities of product diversification and geographic expansion.”
© Press Release 2021
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