ABU DHABI, Food and beverages company Agthia Group on Wednesday announced the successful completion of its strategic combination with Al Foah, a 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.
The transaction – which was first proposed by General Holding Corporation (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 – which is part of ADQ – now owns 59.17 percent of the entire issued share capital of Agthia, up from the 51 percent it owned before the deal.
Khalifa Sultan Al Suwaidi, Chairman, Agthia Group and Chief Investment Officer of 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.”
Source: Emirates News Agency