Saudi’s Arrow Food makes a counter bid to buy Arab Dairy

Saudi Arabia-based Arrow Food Distribution has made a bid to buy Egypt’s Arab Dairy Products at $7.98 (57.12 Egyptian pounds) a share.

Arrow’s offer comes after Pioneers Holdings made an offer to buy 60.2% at $7.83 (56 Egyptian pounds) a share, reported Reuters.

Arrow said that it has offered to buy 100% shares or not less than a 51% stake.

Arrow Food distributes, manufactures and sells food products in the Middle East. The company expects Arab acquisition to expand its distribution network and give it access to other Middle East markets.

Founded in 1985, Arab Dairy manufactures cheese under the brand names Panda, Dairy, Two Cows, Wonder Cow and Gardens’ Cow. It exports to Lebanon, Jordan, Libya, the UAE, Saudi Arabia, Palestine, Bahrain, Oman and Kuwait.

Pioneers specialises in financial services and currently owns 25% interest in Arab Dairy. It has valued Arab at more than $27.97m.

Pioneers’ investment committee general manager Khaled El Tayeb previously told Reuters that his company expected the bid to be accepted and had plans to restructure Arab Dairy and take it to new markets.

The company specialises in brokerage services, market research and investment banking for retail and institutional clients in Egypt, the United Arab Emirates and Bahrain. It invests in the real estate, industrial, and financial sectors.

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Image: Arrow Food Distribution has made a bid to buy Egypt’s Arab Dairy Products. Photo: courtesy of Naypong/freedigitalphotos.net.