Dubai/London: Saudi Arabia said on Wednesday it had completed the first batch of its flour milling sector privatisation, according to a statement by the state grain buyer and privatisation centre.
The long-awaited flour mills sale was one of the first privatisations the kingdom planned as part of a wide-reaching overhaul of its economy.
The first milling company was awarded to Raha AlSafi consortium at 2.027 billion Saudi riyals ($540.1 million), while the third mill went to Alrajhi-Ghurair-Masafi consortium for 750 million riyals, a statement by the National Centre for Privatisation and PPP (NCP) and the Saudi Grains Organization (SAGO) said.
The Raha AlSafi consortium was led by Saudi Arabian firm Almutlaq Group and also including Al Safi, Abunayyan Holding and United Arab Emirates-based Essa Al Ghurair Investment, said a source familiar with the matter, adding investment bank Canaccord Genuity acted as the financial adviser.
Alrajhi-Ghurair-Masafi included Saudi Arabia’s Al Rajhi and Al Ghurair Foods of the United Arab Emirates, the source said.
The final financial bids were submitted on Sunday.