June 25, 2014
Saudi's Almarai to invest US$346.57 million in Egypt's dairy farm
Saudi-based dairy company, Almarai, will invest SAR1.3 billion (US$346.57 million) over the next five years in Egypt through its jointly-owned subsidiary with PepsiCo, International Company for Agricultural Industries.
The plan for International Company for Agricultural Industries, which trades as Beyti, includes establishing a new dairy farm for 5,000 cows, a new juice factory, expanding existing facilities and increasing the company's fleet of vehicles and sales network, Beyti's chief executive Mohamed Badran told Reuters at a news conference in Cairo.
Beyti is owned by International Dairy & Juice (IDJ), a joint venture between Almarai, which owns 52% of shares, and PepsiCo, which owns the remaining 48%. Beyti, founded in 2005, was acquired by IDJ in December 2009. IDJ was formed in 2009 to focus on expansion opportunities in South East Asia, Africa and the Middle East, excluding the GCC.
Almarai's chief executive Abdulrahman Al Fadley said he hoped to raise the investment to about US$560 million over five years. The additional money would be spent on another dairy farm for 20,000 cows, which Badran said would be the biggest in Egypt.
Almarai said that IDJ's investment in Beyti would be funded by an equity injection from both shareholders, and via Beyti's financial debt. Almarai's portion of the investment will be funded via cashflow, it said.
The announcement came two days after a short meeting between Saudi Arabia's King Abdullah and Mr El Sisi in Cairo.