Baker McKenzie Advises the Savola Group in SAR 6B Rights Issue and Distribution of Savola Group's Entire 34.52% Stake in Almarai Company

Baker McKenzie advised the Savola Group ("Savola"), a leading strategic investment holding group in the food and retail sectors across MENAT, in executing three interlinked transactions that mark a historic milestone for Savola. These transactions include a SAR 6 billion (~USD 1.6 billion) rights issue, a capital reduction and the distribution of Savola's entire 34.52% stake in Almarai Company to Savola's eligible shareholders at the date of the extraordinary general assembly meeting (EGM). This strategic initiative aims to enhance Savola's market position and drive future growth.

The rights issue, which was very successful and received positively in the market, was a significant milestone for Savola as it continues to expand its regional presence. Additionally, the capital reduction enabled Savola's to distribute its entire stake in Almarai Company as a distribution in-kind to Savola's shareholders.

This landmark and groundbreaking transaction is the first of its kind in the region, featuring a capital reduction followed by an in kind distribution of shares to the public.

Karim Nassar, Baker McKenzie's Managing Partner, who led on the transaction, stated: "We are proud to support Savola in this pivotal moment, reinforcing their commitment to growth and innovation in the industry. This successful transaction is a testament to Savola's robust business strategy and our firm's dedication to delivering exceptional legal services."

Following the successful completion of the rights issue in September 2024, Savola has obtained the approval of its EGM on the capital reduction and the distribution of Savola's stake in Almarai Company on 12 December 2024.

Baker McKenzie's team provided comprehensive legal counsel throughout the process, ensuring a smooth and efficient execution of the above three transactions. The capital markets team was led by Karim Nassar, with support from Samar Baharon, Thamer AlZayer and Khalid AlAhmary. James Thompson, Partner at Baker McKenzie London, also contributed to these transactions.