The Saudi Public Investment Fund (PIF) has announced plans to buy 50% stake in Adeptio Group’s, which controls the Kuwait Food Company (Americana).
However, financial details of the transaction were not disclosed.
Saudi Arabia's top sovereign wealth fund will buy the stake in Adeptio from a UAE based businessman Mohammed Alabbar, reported Al Arabiya.
Its purchase agreement comes in the wake of Adeptio’s acquisition of 67% in the Kuwaiti food giant in June for about $2.4bn from Kuwait based Khorafi family.
According to the publication, Adeptio intends to bring in a compulsory buyout of the remaining stake in Americana held by other investors.
PIF was quoted in Arab News as saying: “Following the acquisition of this stake in Americana, Adeptio will launch a mandatory tender offer for the remaining shares in Americana held by public shareholders.”
Alabbar will continue to retain 50% of the stake in the food group alongside PIF.
Established in 1964 in Kuwait, Americana Group operates in over 13 countries, predominantly in the Middle East region. It has doubled up as a restaurant chain operator in the region besides manufacturing various food brands.
Americana runs major quick service restaurants such as KFC and Pizza Hut in the Middle East and North Africa region.
The Kuwaiti company manufactures Farm Frites frozen vegetables, California Garden beans alongside meat and poultry products. It also makes canned food, frozen potatoes and vegetables, salty snacks and dairy foods.
In January, Americana commissioned a new canned beans factory in Egypt. The factory is said to produce 3 million cartons of canned beans in a year.
