Almarai Company has announced its interest in acquiring a controlling stake in the Abu Dhabi-based National Food Products Company (NFPC).
“NFPC has officially initiated a competitive sale process for part of its share capital and has invited Almarai to proceed with due diligence,” Saudi Arabia-based Almarai said in a statement.
The announcement represents the next step in a potential investment in NFPC, which FoodBev first reported on in January.
Quoting sources close to the deal, Reuters reported that Almarai was one of several companies interested in the stake, which in October was being valued at around $1.5bn.
According to the news agency, “Almarai is looking to spend up to 21bn SAR ($5.6bn) in investment between 2016 and 2020 to expand its business, including in the areas of farming, manufacturing, distribution and logistics.”
The Saudi firm also announced plans to boost its capital by one third next year through the issuance of bonus shares to help support growth plans outlined earlier in 2015.
NFPC is one of the largest food and dairy manufacturers and distributors in the United Arab Emirates (UAE) and markets brands including Milco, Lacnor and Oasis bottled water.
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