JEDDAH, 3 December 2006 — The board of directors of the Savola Group approved during a Nov. 30 meeting to pursue talks toward the buying Egyptian Fertilizers Company SAE.
Savola currently owns a 30-percent stake of the Egyptian company, and the deal would result in a complete takeover of the rest of the company, a transaction worth SR3 billion. The acquisition will be subject to the parties agreeing on detailed commercial terms and drafting and execution of contracts, regulatory approvals and Savola’s approval.
Once fully consolidated, EFC is expected to contribute an additional SR300 million to Savola’s operating profits next year.
Commenting over the envisaged acquisition, Savola’s CEO Abdulraouf Mannaa said: “The transaction represents an important milestone in Savola’s long-term strategy of becoming a prominent player in the petrochemical industry. It will provide Savola with the ideal platform to further develop activities in the photochemical field while allowing Savola to benefit immediately from a booming industry with outstanding growth prospects in the region and beyond.”