Abu Dhabi-listed food and beverage company Agthia Group on Wednesday said its board has approved an indirect acquisition of three quarters of Egypt's Ismailia Agricultural and Industrial Investment.
Agthia's acquisition of the 75.02% stake would give Ismailia an enterprise value of 3.22 billion Egyptian pounds ($205.6 million), Agthia said in a stock exchange filing.
Two wholly-owned units of Agthia will be incorporated as private limited companies with nominal share capital in the Abu Dhabi Global Market and used as acquisition vehicles for the transaction.
A Big Player
Agthia, owned by Abu Dhabi state-owned holding company ADQ, has made a series of recent acquisitions as it seeks to become a big player in the region's food and beverage industry.
In November of last year, Louis Dreyfus Company agreed to sell a large stake to ADQ, ending chairwoman Margarita Louis-Dreyfus' long search for a new investor in the 169-year old commodity merchant.
UAE's food and water security minister Mariam bint Mohammed Saeed Hareb Almheiri said that the acquisition of a stake in commodity merchant Louis Dreyfus Company (LDC) by ADQ is an important part of the emirates' food security strategy.
Established in the UAE in 2004, Agthia Group offers high-quality, essential food and beverage products for customers and consumers across the UAE, GCC countries, Turkey and the wider Middle East.
The company employs more than 4,500 people and its clients include Grand Mills Flour, Yoplait Yogurt, Al Ain Tomato Paste, Al Ain Frozen Vegetables, Al Ain Water, Alpin Natural Spring Water, Capri-Sun Fruit Juice, among others.