UAE’s ADNH Catering will increase its ownership in Saudi joint venture Compass Arabia to 50% and take over its management
ADNH Catering, a part of Abu Dhabi National Hotels (ADNH), plans to increase its ownership in the Saudi joint venture, Compass Arabia, to 50% as part of its efforts to grow in Saudi Arabia.
Major Ownership
ADNH Catering has signed an agreement with Compass Group International B.V. and Al-Rushaid Petroleum Investment Company to buy an extra 20% share in Compass Arabia through its subsidiary, ADNH Catering LLC-OPC.
After the deal, expected to be completed in early 2025, Compass Arabia will get a new name, and Al-Rushaid will keep the other 50% share.
ADNH Catering has also signed a shareholder agreement with Al-Rushaid to manage the joint venture and take control of its operations. Once the deal is done, the joint venture’s financial results will be included in ADNH Catering’s records.
The joint venture, established in 2012, currently provides food and support services in Saudi Arabia.
Key statement
“Our larger ownership in our Saudi joint venture lets us grow beyond our strong position in the UAE. We plan to expand ADNH Catering Group’s operations into different sectors and regions in Saudi Arabia, including Riyadh,” said Clive Cowley, CEO of ADNH Catering Group.
Saudi market
ADNH Catering highlighted Saudi Arabia’s strong economic growth as a key reason it’s an appealing market. Expanding operations there is a central part of the company’s strategy.
Riyadh’s fast-growing private healthcare sector offers great opportunities for increasing market share in Saudi Arabia.
Recent IPO
ADNH Catering held an initial public offering (IPO) in October, raising $235.2 million (AED 864 million) by selling 40% of its shares. This gave the company a total market value of $588.1 million (AED 2.2 billion). The IPO was highly popular, attracting strong interest from both local and international investors.
Big Numbers
As of December 12, ADNH has a market value of $1.9 billion (AED 6.99 billion), while ADNH Catering is valued at $563.6 million (AED 2.07 billion).
Published: 14th December 2024
For more article like this please follow our social media Twitter, Linkedin & Instagram
Also Read:
Jordan will receive $130 million as part of an IMF financial deal
Saudi Awwal Bank Raises Over $1 Billion in Sukuk Offering
Embracing Minimalism: How You Can Live a Happy Life
