Savola Azizia United Co., a Saudi food producer, agreed to buy Al-Hokair Group's seven percent stake in Azizia Panda United Co. in a stock transaction valued at SR297.6 million ($79.4 million). Savola Azizia plans to issue 8.7 million shares to pay for the holding, the company said in a statement on the Saudi bourse Saturday. The amount represents 1.6 percent of Savola Azizia's capital and is based on its share price at SR34.2, according to the statement. Jeddah-based Savola Azizia, which has 113 outlets in Saudi Arabia, is expanding its businesses to meet rising demand from a growing population in the Arab world's biggest economy. In August, the company agreed to buy Al-Muhaidib Holding's 18.6 percent stake in Azizia Panda and a 10 percent stake in Savola Foods Co., in return for raising Al-Muhaidib's stake in Savola Azizia to 15 percent. After completion of the transaction announced today, Savola Azizia will own Azizia Panda in its entirety. The latest acquisitions represent a “strategy aimed at further focusing on the retail sector,” Savola Azizia Managing Director Abdul-Raouf Mana'a said in the statement. Savola plans to issue 8.71 million new shares to Alhokair Group, and pay SR20.7 million ($5.52 million) in cash in exchange for latter's 7 percent stake in Azizia, Savola said in a statement on the bourse website on Saturday. The new shares are worth SR310.8 million based on Wednesday's closing price. Last year, Savola paid Fawaz Alhokair Group SR248.6 million in cash and 7 percent in shares in Azizia Panda to buy some assets held by supermarket chain Geant Saudi Arabia. This would be the second time in less than two months that a Saudi family-owned firm agrees to sell its shares in Azizia Panda United to Savola Group. Savola said the Alhokair deal valued Azizia Panda United at SR4.3 billion. Savola Group stocks ended 0.8 percent down, having risen by as much as 2.2 percent in early trading after it announced plans to take full ownership of its retail division.
