Savola Azizia United Co., a Saudi food producer, agreed to buy Al-Muhaidib Holding's 10 percent stake in Savola Foods Co. and its 18.6 percent stake in Al Azizia Panda United Co. to expand its food and retail business. Savola, based in Jeddah, plans to issue 37.6 million preferential shares valued at SR376.3 million ($100 million) to pay for the stakes, the company said in a statement on the Saudi bourse website on Monday. Savola said the amount represents 7 percent of its capital. Savola, which has 113 outlets in Saudi Arabia, expanded its businesses to meet rising demand from a growing population in the Arab world's biggest economy. In October, the company acquired the Saudi assets of Casino Guichard-Perrachon SA's Geant superstores from Fawaz Abdulaziz Alhokair & Co. The latest acquisitions represent a “strategy aimed at further focusing on the foods and retail sectors,” Savola Managing Director Abdul-Raouf Mana'a said in the statement. Savola also said it appointed Suleiman Al-Muhaidib as chairman of the company, according to a separate statement to the Saudi bourse today. Al-Muhaidib replaces Adel Faqih after King Abdullah appointed him labor minister earlier this month. Al-Muhaidib is also chairman of AK Al-Muhaidib & Sons Group, a board member of Saudi British Bank, Almarai Co. and Arabian Pipes Co., the company said.
