Savola Group of Saudi Arabia signs a strategic deal to exit the Iranian market!

Saudi Savola Group announced that its fully owned subsidiary, Savola Foods Company, has signed a binding agreement for the sale and purchase of shares to sell its entire operations in Iran to a foreign investor, for an amount of 705 million Saudi Riyals. The group stated that this deal is still subject to the completion of some legal procedures and obtaining the necessary regulatory approvals.

The deal includes the sale of all activities of Savola Foods Company in Iran, which encompass the manufacturing and distribution of cooking oils, as well as the production of seafood, baked goods, and sweets. Savola clarified in its statement that the undetected net book value of these businesses and investments amounted to approximately 656.5 million Saudi Riyals as of November 30, 2024.

This transaction is expected to result in a total profit of about 2.8 million Saudi Riyals, after deducting the costs associated with the deal. The Saudi Savola Group emphasized that this step aligns with its strategy aimed at divesting from non-core markets and focusing on high-potential markets.

The statement issued by the Saudi company added that the decision reflects Savola's ongoing commitment to maximizing shareholder value and redirecting resources toward promising growth opportunities in the food sector, in line with its long-term strategic plans.

In trading activities, shares of Saudi Savola Group (TADAWUL: 2050) fell by 1.91% or 0.70 Riyals per share, trading around the 36.00 Riyals levels during the Saudi stock exchange transactions.

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