Saudi's Savola confirms talks on Americana stake deal

Food producer says it has signed agreement with one of largest shareholders on potential purchase

Major Saudi Arabian food producer Savola Group said on Tuesday it had conducted preliminary talks with one of the largest shareholders in Kuwait Food Co (Americana) on a potential purchase of that shareholder's stake.

Savola said it had signed a non-disclosure agreement with the shareholder, and repeated that it had not entered into any binding commitments.

The Saudi company did not name the shareholder. Reuters reported in April that the al-Kharafi family, the billionaire majority shareholder in Americana at 66.8 percent, had hired investment bank Rothschild to explore a possible sale of the business.

Savola said last week that it had begun preliminary talks on a potential acquisition of Americana and that it had attended an investor roadshow held by Americana's management. US private equity firms are also believed to have expressed interest.

On Monday this week, however, Americana issued a statement saying it had no knowledge of any talks with Savola on a possible acquisition.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Taking cover: Inside the GCC home insurance market

Taking cover: Inside the GCC home insurance market

Home insurance in the GCC remains remarkably low, despite arresting...

Is Africa's investment dream still on track?

Is Africa's investment dream still on track?

It was the new bright spot for global investors, but widespread...

Deal-making to drive 2017 Middle Eastern banking fee bonanza

Deal-making to drive 2017 Middle Eastern banking fee bonanza

Fees from the Middle East reached $581m during the first nine...

Most Discussed
sponsoredTracking