SAGO sells factories to UAE buyers as a part of ongoing KSA privatization drive

RIYADH: The Saudi Grains Group (SAGO) and the Nationwide Middle for Privatization (NCP) introduced Thursday that the Third Milling Co. (MC3) has been bought to a consortium of UAE buyers.

The consortium, which incorporates Ghurair Funding (AGI), Al Rajhi Holding Group and Masafi, acquired MC3 following a young led by SAGO and NCP.

SAGO will proceed to supervise MC3 in its remit as regulator of the Kingdom’s flour sector and its fundamental importer and provider of wheat, barley and different grains.

The milling sector represents one of many key sectors for full privatization in accordance with Saudi Imaginative and prescient 2030, and the completion of the acquisition is a crucial milestone within the nation’s privatization program.

Commenting on the settlement, John Iossifidis, CEO of AGI Group, stated: “The completion of the strategic acquisition of MC3 marks an essential step within the transfer in direction of the privatization of important sectors, and aligns with the technique of AGI to assist governments as they search to enhance meals safety throughout the area.

“We’re grateful to NCP, SAGO and our consortium companions for his or her confidence in our dedication to advance the event of the grain sector. AGI has an extended and proud historical past within the flour trade, having established the primary flour milling firm in Dubai in 1976. We sit up for bringing this expertise to Saudi Arabia and utilizing it to drive development and the diversification of MC3, ”he added.

Djamal Djouhri, CEO of Al Ghurair Meals, stated: “The monetization of public property is a key merchandise on the agenda of governments within the Center East, as is meals safety which seeks to spice up competitiveness, range merchandise and operational effectivity.

Esmail Al-Sallom, Director of Investments at Al Rajhi Holding Group, stated: “It is a landmark transaction which is a serious step in direction of the Kingdom’s imaginative and prescient of accelerating non-public sector participation within the Saudi financial system. . Al Rajhi Holding Group goals to leverage its expertise… to enhance operational effectivity and efficiency, stimulate new product growth, enhance distribution networks, improve market penetration and enrich the general shopper expertise.

Though the valuation of the latter deal was not disclosed, Al-Raha Al-Safi Meals Co. introduced the acquisition of First Milling Co. (MC1) in January for $ 540 million, a deal additionally facilitated. by NCP and SAGO.

MC1 is the biggest of the Kingdom’s 4 flour mills, and the sale was additionally a part of SAGO’s plan to denationalise Saudi flour mills and grain elevators beforehand owned by the Public Funding Fund, Saudi Arabia’s sovereign wealth fund.

Final month, the Saudi cupboard introduced plans to denationalise 16 key industries, together with surroundings, water and agriculture, transport, vitality, trade and mineral wealth, labor and social growth, housing, schooling, well being, municipalities, Hajj and Umrah, communications and the sectors of data expertise, media, sports activities, inside and finance.

“We’re working with all sectors focused by privatization. A number of tasks have lately been chosen and launched in… well being, schooling, transport, municipalities, surroundings, water and agriculture and human sources and social growth ”, stated Hani Alsaigh, Director normal of strategic communication and advertising on the NCP, at Arab Information.

In January, the NCP introduced that it had raised SR 3 billion ($ 800 million) in income from the sale of state property in 2020 and aimed to earn round SR 15 billion or extra in 2021. .


Supply hyperlink

About Madeline Dennis

Check Also

New forms of protest emerge amid Lebanese crisis

In the shadow of the stalled revolution in Lebanon, new forms of protest are emerging …