Almarai is pleased to announce to its shareholders that, the International Company for Agricultural Industries (Beyti), a subsidiary company of International Dairy & Juice Limited (IDJ), a joint venture between Almarai Company (52%) and PepsiCo (48%), on Sunday 24/08/1435H (corresponding to 22/06/2014G) will disclose its new strategic plan to invest EGP 2,500 million, equivalent to about SAR 1,300 million (at the prevailing exchange rates) in Egypt. This investment plan, which was approved by the IDJ board on June 16th 2014 and Approved by Almarai Board of Directors via circular mailing on June 19th 2014, will span over the next 5 years, and is aimed at enhancing Beytis competitive position in the Egyptian market.
Through this investment plan, Almarai, and its joint-venture partner PepsiCo, re-affirms their commitment to the expansion of the Egyptian market.
The program will be funded in majority by an equity injection from both joint-venture partners, as per their percentage of ownership, the rest through Beytis financial debt. For Almarai this equity injection will be financed through its own cash-flow.
The financial impact of these capital investments will be reflected gradually from Q3 2014 until 2019, on a consolidated basis, as the projects developed, through an increase in its assets and debt, as well as an increase in its consolidated sales.