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Saudi Arabia completes the flour milling sector privatization

12 August 20212 min reading

The National Center for Privatization and PPP (NCP) and the Saudi Grains Organization (SAGO) announced the sale of the Second Milling Company and Fourth Milling Company to qualified strategic investors. This comes as part of the final stage of the flour milling sector privatization in the Kingdom.

The formal signing of the Share Purchase Agreement took place at the Ministry of Environment, Water and Agriculture (MEWA) headquarters in Riyadh, in the presence of Eng. Abdulrahman A. Al-Fadley, the Minister of Environment, Water and Agriculture, the Chairman of the Board of Directors of SAGO, the Chairman of the Privatization Supervisory Committee for the environment, water and agriculture sectors, and a member of the Board of Directors of NCP. The Second Milling Company was sold for 2.13 billion riyals ($568 million) to Abdulaziz Al-Ajlan Sons Company for Commercial and Real Estate Investment, Al-Rajhi International Investment Company, Nadec and Olam International Company (OLAM.SI), a statement said. The Fourth Milling Company was sold for 859 million riyals Alana International Alliance, Abdullah Al-Othaim Markets Company and United Feed Industry Company. According to an official SAGO briefing, the award of each milling company was decided based on the highest financial bids submitted by qualified strategic investors, which were thoroughly reviewed to ensure adherence to the terms stipulated in the request for proposal for the first and second batch of privatizing the flour milling sector. The flour milling sector represents one of the targeted sectors for full privatization under Saudi Arabia's Vision 2030. "The sale of the four milling companies to the private sector aims to further strengthen the capabilities of the sector, enhance performance, support diversification of products while maintaining quality," the statement added. "This privatization will improve services provided to citizens and yield employment opportunities through increased contribution of the private sector towards a thriving and sustainable economy." ASHARQ AL-AWSAT

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