17/10/2009
RIYADH, Oct 17 (Reuters) - Almarai Co said on Saturday it had completed a takeover of Hail Agricultural Development Co (Hadco), which will allow the firm entry into the lucrative poultry business.
The $253.2 million cash and stock takeover bid was completed after Hadco shareholders approved it through both remote voting and an assembly held on Thursday, Almarai said.
Hadco shareholders would be paid by Oct. 29 at the latest, it added.
Separately, the Saudi stock exchange said Hadco shares will be delisted as of Saturday after the takeover obtained necessary approvals from Almarai's shareholders.
The takeover is the first involving two Saudi listed firms.
Mergers and takeovers among listed firms are a rare sight in Saudi Arabia, which has a relatively unstable shareholder base dominated by retail investors and day traders who invest for quick gains.
The deal allows Almarai to enter the lucrative Saudi poultry business where Hadco is the fourth biggest producer, according to Dubai-based Shuaa Capital.
In addition to being a key domestic player in the poultry business, Hadco produces olives, wheat, dates and grass fodder. Almarai has its own cattle farms.
Almarai has been diversifying its revenues through acquisitions and has earmarked 6 billion riyals ($1.6 billion) for investments to expand outside the Gulf Arab region.
