THE Savola Group has acquired Al-Muhaidib's 10 percent shareholding in Savola Foods Company (SFC) and its 18.6 percent (direct and indirect) shareholding in Azizia Panda United Company (Panda) in exchange for issuing new shares in Savola to Al-Muhaidib based on a new agreed valuation following the approval of its Board of Directors last April 3. The total value of transaction is SR1.34 billion. SFC and Panda have been valued on a 100 percent equity basis at SR6.26 billion and at SR3.83 billion, respectively. As a result, Al-Muhaidib's shareholdings in SFC and Panda are valued at SR626.3 million and SR712.6 million, respectively. As consideration for the acquisition of Al-Muhaidib's shares in SFC and Panda, Savola will issue 33,980,684 new shares to Al-Muhaidib, representing approximately 6.4 percent of Savola's entire issued share capital after the issue of the new shares. This will increase Savola's total shares in issue from 500,000,000 shares to 533,980,684 shares. The number of new Savola shares to be issued has been determined using a 60-day volume weighted average share price of SR39.40 as of March 16, 2013. Dr. Abdulraouf Mannaa, Managing Director of Savola Group, said the performed transaction is in line with Savola's strategy of “Focus” and “Sustainable Growth” in the food and retail sectors. As a result of the transaction, the combined shareholding of AbdulKadir Al-Muhaidib & Sons and Al-Muhaidib Holding Company in Savola will increase from 8.52 percent to 14.34 percent, and Savola's direct and indirect shareholding in SFC and Panda will increase from 90.0 percent to 100.0 percent and from 74.4 percent to 93.0 percent, respectively.” AbdulKadir Al-Muhaidib & Sons owns 8.52 percent of Savola's shares as of the date of this announcement. Sulaiman Abdulkadir Al-Muhaidib is the Chairman of the Board of Directors for the Savola Group and AbdulKadir Al-Muhaidib & Sons Co. — SG
