Baker McKenzie Advised Savola Group On Strategic SAR 6 Billion Rights Issue And Capital Reduction

Baker McKenzie Advised Savola Group on Strategic SAR 6 Billion Rights Issue and Capital Reduction

Baker McKenzie has advised the Savola Group, a leading strategic investment holding group in the food and retail sectors across the MENAT region, on three interlinked transactions that mark a historic milestone for the company.

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 eligible shareholders at the date of the extraordinary general assembly meeting (EGM). This strategic move is aimed at strengthening Savola’s market position and driving future growth.

The rights issue, which was met with positive reception in the market, is a significant milestone for Savola as it continues to expand its regional footprint. Additionally, the capital reduction facilitated the distribution of Savola’s entire stake in Almarai Company as an in- kind distribution to Savola’s shareholders. This 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 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.”

After the successful completion of the rights issue in September 2024, Savola obtained approval for the capital reduction and the distribution of its stake in Almarai Company at the EGM held on December 12, 2024.

Baker McKenzie provided comprehensive legal counsel throughout the process, ensuring the smooth and efficient execution of all 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.

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