Business Point Today

Saudi Arabia's Almarai, the Middle East's largest dairy company, plans to invest 405 million Saudi riyals ($108m) to drive its expansion into the seafood business and to secure poultry supplies as part of the kingdom's focus on food security. The dairy company's board of directors approved an initial investment of 252m riyals into the seafood processing business, which Almarai will finance from operating cash flows, the company said in a filing to the Tadawul stock exchange on Tuesday. The investment plan will expand Almarai's product range and contribute to the kingdom's “food security agenda as per vision 2030", the company said. The expected time frame of the seafood investment is 24 months from the date of final regulatory approval. Saudi Arabia has been increasingly focused on bolstering its food security through investments in local manufacturing and agricultural technology start-ups. The Russia-Ukraine crisis has led to an increase in the prices of b...

 Saudi Agriculture and Livestock Investment Company (Salic), a subsidiary of the kingdom's Public Investment Fund, acquired a 35.4 per cent stake in the agribusiness unit of Singapore-based commodity trader Olam Group for $1.2 billion. The transaction implies an equity valuation of $3.5bn for Olam Agri, creating a "strong shareholder base for a potential future listing and [its] demerger", Olam Group said in a statement. Olam Agri is a commodity trading and processing company that specialises in grains, oilseeds, rice and animal feed Proceeds from the deal will be used to repay the debts of Olam Group, help in "right sizing" its capital structure and reduce leverage, it added. Following the deal, Olam Group will remain the biggest shareholder in its agribusiness unit with a 64.6 per cent stake. The transaction is expected to be completed this year, subject to regulatory approval, Salic said in a separate statement. "Our partnership with Olam will expand Sal...