The number of Nadec shares will increase from 84.7 million to 138.3 million.
National Agricultural Development Co (Nadec) of Saudi Arabia (part owned by the sovereign wealth fund) will buy DANONE’s venture in the country, promoting one of the kingdom’s largest dairy producers.
In a statement to the Saudi stock market Sunday, they said Nadec, as the company is known, will fund the acquisition of privately held Al Safi DANONE through a capital increase of 536 million riyals ($143 million).
According to the statement, once the deal is completed, existing Nadec shareholders will own 61.25 percent and Al Safi shareholders will hold 38.75 percent of the company. The number of Nadec shares will increase from 84.7 million to 138.3 million.
Abdulaziz Al Babtain, managing director of Nadec, said in the statement, “The transaction will allow both companies to better serve customers and realize benefits not available on a standalone basis. It will create a platform for future growth and, importantly, drive significant value creation for shareholders.”