Salik signs an agreement to raise its share in “Agricultural Agricultural” to 80.01%

The Saudi Agricultural Investment and Animal Production Company (Salik), one of the public investment fund companies, signed today an agreement to increase its share in the Agricultural Holding Company from 35.43% to 80.01% with a total value of 1.78 billion dollars (equivalent to approximately 6.7 billion riyals).
The deal procedures are completed after obtaining the necessary approvals from the relevant authorities.

My future acquisition

The agreement includes an option for Salik to buy the remaining share of 19.99% within three years from the date of the completion of the deal, which allows it to move to the full acquisition in the future, taking advantage of the experience of the birth group during the transition stage.
Salik aims to invest in the food and agriculture sectors in order to enhance food security and achieve growth and sustainability through strategic partnerships at all stages of the value chain in an integrated and effective manner linking global and local markets.
This acquisition comes in accordance with Salik’s international strategy that aims to ensure the availability of basic commodities and enhance their sustainability by diversifying investments, linking supply chains, improving logistical efficiency and achieving leadership in the grain sector.

An investment vision

“Since our acquisition of 35.43% in children, the company has proven its strategic worth by being one of the leading international companies in the trade of basic commodities, which strengthened our confidence in our investment vision and aspirations to achieve sustainable growth,” said Engineer Suleiman Al -Rumaih.
He added: “This corresponds to the Salik methodology in investment that focuses on promising companies to meet future needs in the field of food security and support innovation and the integration of supply chains inside and outside the Kingdom.”
Al -Rumaih pointed out that the acquisition process, after its completion, will allow the company of Aamam the opportunity to expand the markets to take advantage of the local and international capabilities, and in return it will enhance Salik’s position in the grain sector globally, which is beneficial to consumers in a significant way by raising the efficiency of production and distributing food. While the agreement guarantees a smooth transition that benefits from the experience of the Ayam Group during the transition period until the completion of the full acquisition according to the available option.

New horizons

For his part, the CEO of Awam Agricultural Holding Company, Sunny Fergiz, stressed: “The partnership with Salik started since 2022 with the aim of searching for new prospects for growth and development, as it is a global company that invests in the agricultural food sector.”
He added: The two companies share the vision that focuses on sustainable sources and a commitment to meet the increasing demand for food, fodder and fiber, at the same time, at the same time that, with the completion of the deal, the Agricultural Company will witness a qualitative shift.
It is worth noting that the Salik Group has qualitative investments in the global food supply chain in an effort to provide access to basic commodities on a large scale, as its current investments extend across 5 continents in 7 countries and aim to invest in 16 strategic commodities.