Tanmiah Food Company (TADAWUL: 2281, "Tanmiah" or "The Company") have announced the signing of the shareholder agreement between its fully owned subsidiary, Desert Hills Veterinary Services Company Limited (DHV) with MHP SE (LSE: MHPC, 'MHP'), the leading international food & aggrotech group.
This partnership is set to significantly boost food security and self-sufficiency in poultry products in Saudi Arabia.
The signing ceremony was held in Jeddah on 7 September 2023 and was attended by the Chairman of the Board of Tanmiah, His Excellency Sheikh Amr Al-Dabbagh, along with the board members and executive leadership, Saudi Government officials representing ministries, authorities, funds, and centres of excellence and the Ambassador of Ukraine, His Excellency Mr. Anatolii Petrenko. Executive Chair of MHP SE, Dr John Rich, and MENA Managing Director of MHP, Eugene Levterov, represented the Board and MHP at the ceremony.
Building on the foundation laid by the Memorandum of Understanding signed earlier this year, this partnership will see DHV and MHP SE join forces to invest more than SAR 200 million in farming operations with the capacity of more than 1 million parent stock expected to produce approximately 175 million hatching eggs annually, a state-of-the-art hatchery and a poultry feed mill. DHV will hold a 55% stake, while MHP will have a 45% stake in the joint venture.
Zulfiqar Hamadani, CEO of Tanmiah Food Company, remarked: "Our collaboration with MHP signifies more than just a partnership; it represents our commitment to strengthen Saudi Arabia's food security framework. Utilizing our local knowledge combined with global best practices, our portfolio of best-in-class products, services, and solutions demonstrates our commitment to our customers, partners, and the broader objectives of Vision 2030."
Dr John Rich, Executive Chair of MHP SE, stated: "Deepening our alliance with Tanmiah is a strategic pivot in MHP's global outreach. This partnership is emblematic of our shared vision to integrate international expertise with local insights, ensuring that Saudi Arabia's food security targets are met. Our collective strengths will catalyze transformative advancements in the poultry sector, fostering innovation and setting new benchmarks for excellence. The formation of this joint venture is an important first step. We are committed to a long-term, fruitful relationship that will benefit our organizations, the entire Kingdom of Saudi Arabia and the region. We will continue pursuing strategic opportunities in the region, seeking to capitalize on our expertise. "
Ahmed Bin Sharaf Osilan, Executive Board Member and Managing Director of Tanmiah Food Company, commented: "Our partnership with MHP is a strategic step to delivering sustainable value to our stakeholders and making significant strides towards Vision 2030. As we are working towards boosting food security and self-reliance in Saudi Arabia, we are building facilities that are critical in the entire poultry ecosystem in Saudi Arabia, increasing non-oil GDP private sector contribution, local employment opportunities, and knowledge transfer."
The signing of the shareholder agreement is a decisive step in establishing the joint venture company after the necessary approvals, including clearance from the General Authority for Competition of Saudi Arabia and other relevant jurisdictions, are secured.