Riyadh – Mubasher: Saudia Dairy and Foodstuff Company (SADAFCO) said that its wholly-owned subsidiary, SADAFCO Poland, has signed an agreement to acquire an initial stake of 76% in Mlekoma Sp z.o.o and its unit Foodexo sp.z o.o (Mlekoma Group) at a value of SAR 120 million (PLN 120 million).

The transaction’s value will be paid in cash, while the financial results of Melkoma Sp z.o.o will be merged with SADAFCO’s financial statement in the quarter which will end on 30 September, according to a statement to the Saudi Stock Exchange (Tadawul) on Monday.

“The existing management board of Mlekoma (the new minority shareholders), have agreed to continue in their roles managing the company,” the statement added.

The Mlekoma group owns two plants in Poland whose business focus on powdered, condensed, and fluid products as whole milk, cream, butter milk, and fat filled powders.

The polish group sells its products to Europe, Africa, Middle East, and Far East.

SADAFCO's stock inched down 0.32% to finish Monday's trading session at SAR 94.80.