UAE’s Agthia board approves 75% acquisition of Egypt’s Atyab
Abu Dhabi-based food and beverage company Agthia Group announced on Wednesday that its board has approved an indirect acquisition of 75.02% of Egypt’s Ismailia Agricultural and Industrial Investment (Atyab),
Atyab is an Egyptian producer of frozen processed chicken and beef products under four brands.
Agthia’s acquisition would give Atyab an enterprise value of 3.22 billion Egyptian pounds ($205.6 million), the Emirati company said in a bourse filling.
The deal will see two wholly-owned units of Agthia being incorporated as private limited companies with nominal share capital in the Abu Dhabi Global Market and used as acquisition vehicles for the transaction.
Agthia, owned by Abu Dhabi state-owned holding company ADQ, has made a series of recent acquisitions as it aims to become a big player in food and beverage industry in the Middle East and North Africa region.
“This acquisition is a continuation of our strategy to position Agthia as the leading FMCG player in the MENA region. Egypt is a key growth market for Agthia, and Atyab operates in a sector that is fast-growing and attractive.” Khalifa Sultan Al Suwaidi, chairman of Agthia Group, said.
“We are confident that this transaction will create new opportunities for Agthia and deliver enhanced value for our shareholders,”
According to Alan Smith, chief executive of Agthia, the transaction will place the company “at the forefront of a growing sector in one of the MENA region’s fastest-growing economies, providing access to around 100 million new consumers characterized by a wide youth segment and rising income,”