Agthia Group’s Board of Directors Approves Acquisition of Leading Processed Food Producer Nabil Foods

• Agthia’s Board of Directors holds meeting after receiving certain regulatory approvals
• The Board approves calling for a General Assembly, which will be convened following receipt of further regulatory approvals
• The transaction will be voted on by Agthia’s shareholders during the General Assembly
• Transaction will also remain subject to obtaining other regulatory approvals
• The acquisition would position Agthia at the forefront of the fast-growing processed protein industry

Abu Dhabi, UAE, 18 February 2021 – Agthia Group PJSC, a leading regional food and beverages company, today announced that its Board of Directors met and approved the acquisition of a majority stake in Nabil Foods after receiving certain key regulatory approvals. Nabil Foods is one of the leading regional producers of frozen and chilled processed protein products distributed in more than 20 markets.

Following receipt of further regulatory approvals, Agthia’s Board of Directors agreed it will now call for a General Assembly where shareholders will vote on the acquisition of Nabil Foods. This transaction would mark Agthia’s first entry into the processed protein industry through a well-established brand with a successful track record of over 75 years.

Alan Smith, Chief Executive Officer of Agthia Group, said: “Today’s Board meeting and calling for a General Assembly in due course are important milestones in the acquisition of Nabil Foods – a significant transaction that will place Agthia at the forefront of a fast-growing industry, expand its product portfolio and cement its position as a leading regional FMCG player.

“This acquisition will be a key part of Agthia’s growth plans, providing us with presence in Jordan for the first time while contributing to a stronger financial profile, wider regional access, enlarged asset base, and enhanced financial performance and profitability.”

Following the receipt of shareholder and remaining regulatory approvals, Agthia would acquire an 80% stake in Nabil Foods, including a 60% stake acquired from ADQ, one of the region’s largest holding companies, in exchange for a convertible instrument as well as a further 20% stake acquired from Ideal Holding Limited in exchange for cash. The fixed price at which the convertible instrument will convert into shares in Agthia is AED 5.50 per share, implying an equity value of AED 394 million for a 60% stake in Nabil Foods.

Nabil Foods has a processing capacity of 43,000 tons per year and 600 individual product lines distributed in more than 20 local and international markets, which will enable Agthia to expand its product offering and immediately access new revenue streams. The acquisition is expected to drive tangible short- and long-term value for all stakeholders, with cost and revenue synergy opportunities and cross-market distribution throughout the region.

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