BRF Takes Stake in Addoha Poultry
Brazil-headquartered meat major BRF has signed a binding agreement to acquire a 26% stake in Saudi Arabia-based Addoha Poultry Co.
The deal, struck through the BRF Arabia joint venture with the Halal Products Development Co. (HPDC), is aimed at bolstering the meat packer’s “operations and portfolio in the Middle East”.
BRF said the transaction value is SR316.2m ($84.3m) and the deal is subject to regulatory approval and other customary conditions.
The company has been operating in Saudi Arabia for five decades, and with this transaction, it expects to become “one of the main partners of Saudi Arabia in its food-security agenda”.
BRF Arabia is 70%-owned by BRF and 30% by HPDC, a subsidiary of the Public Investment Fund of Saudi Arabia (PIF).
BRF said in a statement: “A shareholders’ agreement will be signed between BRF Arabia and the current shareholders of Addoha, ensuring effective participation in the management of the company and allowing the know-how of BRF and HPDC to contribute to the maximisation of synergies between the entities.”
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