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US-based Tyson to acquire stakes in Saudi Tanmiah subsidiaries for $70m

US-based Tyson to acquire stakes in Saudi Tanmiah subsidiaries for $70m
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Riyadh – Mubasher: Tyson International Holding Company, a fully-owned unit of New York-listed Tyson Foods, intends to buy equities in Tanmiah Food Company’s subsidiaries for $70 million upon a signed sale and purchase agreement.

Following the transaction process, Tyson will own 60% of Supreme Foods Processing Company’s shares, while Tanmiah will hold 40% of ownership.

In addition, the US firm will acquire 15% stake in Agricultural Development Company, in which the Saudi company will own 85% of the shares, according to a bourse filing on Wednesday. 

The agreement comes in line with the Saudi listed firm’s strategy to meet increasing global demand for protein products.

In addition, the US-based company will pay $21 million for newly issued shares in Supreme Foods Processing, while Tanmiah will allocate $14 million.

It is worth noting that the transaction value, which is equivalent to SAR 262.20 million, is subject to customary price adjustments.

During the first three months (3M) of 2022, Tanmiah reported net profits after Zakat and tax worth SAR 1.54 million, an annual plunge of 91.80% from SAR 18.79 million.