Tanmiah Food signs SAR 200 mln JV agreement for poultry

Tanmiah Food Co. announced the signing of a shareholders' agreement between its wholly-owned subsidiary, Desert Hills Veternary Co., and MHBSE, to establish a joint venture (JV).

In a statement to Tadawul, Tanmiah pointed out that the partnership consolidates the efforts of Desert Hills Veternary and MHBSE to invest more than SAR 200 million in developing and operating contract agricultural facilities with a production capacity exceeding million broodstock, to annually produce more than 175 million hatching eggs, state-of-the-art hatches, in addition to a poultry breeding facility.

Desert Hills Veternary will own a 55% stake in the JV, while MHBSE will own 45% thereof, the statement noted.

Tanmiah stressed that the JV establishment is subject to the necessary regulatory approvals, including the approval of the General Authority for Competition and the other competent judicial authorities, and applicable licenses.

The financial impact of the deal and any material developments will be announced in due course, the company added.

In February, the company signed a strategic partnership contract for food development with MHP, to establish a JV with an aim to develop and operate poultry breeding facilities, Argaam earlier reported.

Source : Argaam