Savola Al-Azizia United Co., a Saudi food producer, said it will buy Al-Muhaidib Holding’s stakes in Savola Foods Co. and in Al Azizia Panda United Co. to expand its food and retail business.
The Jeddah-based company said that Al-Hokair Group won’t proceed with selling the Riyadh-based retailer’s 7 percent stake in Al Azizia Panda, as the companies had agreed to do last year, according to a statement to the Saudi bourse today.
Al-Hokair is now seeking to purchase a further 3 percent of shares in Azizia Panda, according to the statement.
Savola, which operates about 113 outlets in Saudi Arabia, will continue to expand through acquisitions in foods, retail and plastic, as part of its “strategy of focusing,” Savola Managing Director Abdul-Raouf Mana’a said in the statement.
Savola estimates it will report record annual net income, before capital gains, of 1 billion riyals ($267 million) in line with forecasts it gave at the start of this year.