Baker McKenzie with Savola in SAR 6B rights issue

Baker McKenzie advised the Savola Group, a strategic investment holding group in the food and retail sectors, in executing three interlinked transactions. These transactions include a SAR 6 billion rights issue, a capital reduction and the distribution of Savola’s entire 34.52% stake in Almarai Company to Savola’s eligible shareholders at the date of the extraordinary general assembly meeting. This strategic initiative aims to enhance Savola’s market position and drive future growth.

The rights issue helped Savola in continuing to expand its regional presence. Additionally, the capital reduction enabled the company to distribute its entire stake in Almarai Company as a distribution in-kind to Savola’s shareholders, a first of its kind in the region.

Following the successful completion of the rights issue in September 2024, Savola has obtained the approval of its EGM on the capital reduction and the distribution of Savola’s stake in Almarai Company on 12 December 2024.  

The team

Baker McKenzie’s team provided comprehensive legal counsel throughout the process, ensuring the execution of the three transactions. The capital markets team was led by managing partner Karim Nassar (pictured), with support from counsel Samar Baharon, associate Thamer AlZayer and trainee associate Khalid AlAhmary. James Thompson, partner at Baker McKenzie London, also contributed to these transactions.