Swicorp to advise on $79m Savola share swap.
The share swap will enable Savola to take full control of Azizia Panda United and was approved by the Savola board of directors recently.
Savola will issue 8.71 million shares to acquire Alhokair Group's 7 per cent minority position in Azizia Panda United. Moreover, Savola will pay SR20.7 million in cash to Alhokair in exchange for the latter's forfeit of the right to acquire 3 per cent of Panda over 3 years as set forth in the agreement between the two parties announced through Tadawul on October 12, 2009.
The transaction follows the other conditional swap transaction announced on August 23, 2010 through Tadawul whereby Savola will acquire Almuhaidib Group's current equity participations in Panda and Savola Foods Company against 37,634,409 shares of Savola to be issued.
The shares which will be issued to Almuhaidib and Alhokair under the two proposed swap transactions will represent 8.48 per cent of Savola's share capital post capital increase. Both transactions remain subject to regulatory approvals and to the endorsement by Savola's extraordinary general assembly which shall be specially convened.
Savola Group's managing director, Dr Abdelraouf Mannaa, stated that this step will represent an important milestone as a component of Savola's strategy of focusing and consolidating the group's interests in the retail sector in addition to food.- TradeArabia News Service
Copyright 2010 www.tradearabia.com
Copyright 2009 Al Hilal Publishing & Marketing Group
Provided by Syndigate.info an Albawaba.com company