REG - MHP SE - MHP SE Invests in Saudi Arabia

MHP SEAnnouncement

08/09/2023 07:00

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RNS Number : 8448L  MHP SE  08 September 2023

 

 

 

 

08 September 2023, Limassol, Cyprus

MHP SE

MHP SE Invests in Poultry Value Chain in Saudi Arabia

 

MHP SE (LSE: MHPC), a leading international food and agrotech group with
headquarters in Ukraine, today announces the signing of the shareholder
agreement with Desert Hills Veterinary Services Company Limited (DHV) fully
owned subsidiary of Tanmiah Food Company, a publicly listed company on the
Saudi stock market and a leading provider of fresh poultry, processed poultry,
and other processed meat products in the Middle East. This partnership is set
to further develop MHP's diversification and growth internationally as well as
boost food security and self-sufficiency in poultry products in Saudi Arabia.

Hereinafter, MHP SE and its subsidiaries are referred to as "MHP", "The
Company" or "The Group".

 

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 centers of
excellence and Ambassador of Ukraine, His Excellency Mr. Anatolii Petrenko.
Executive Chair of the Board 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.

 

 

 

Dr John Rich, Executive Chair of the Board 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 and the entire Kingdom of Saudi Arabia and the
region. We will continue pursuing strategic opportunities in the region,
seeking to capitalize on our expertise."

 

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."

 

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.

 

- ENDS -

 

About Tanmiah Food Company

 

Tanmiah Food Company, established in 1962, is one of the Middle East's leading
providers of fresh poultry, processed poultry, and other processed meat
products, as well as animal feed and health products. It is a publicly listed
company on the Saudi stock market. Al-Dabbagh Holding Group Company is the
founding shareholder of Tanmiah Food Company. Tanmiah's fully integrated and
highly efficient business model includes Farming, Primary Processing,
production, further processing, and distribution with products sold in Saudi
Arabia, the UAE, Bahrain, Oman, Jordan, and Kuwait. Tanmiah is also the master
franchisee of Popeyes Louisiana Kitchen. As of 30th June 2023, Tanmiah
operates 114 farms as well as six hatcheries, 2 feed mills, and four primary
processing plants(slaughterhouses). Tanmiah distributes its products through a
network of wholesalers, retailers, and food service outlets, as well as
through its e-commerce platform. Sustainability is a core principle at
Tanmiah, with initiatives including planting a million trees, using treated
wastewater from its facilities, and turning waste products into fertilizer.
For more information, visit www.tanmiah.com (http://www.tanmiah.com)

 

About MHP SE

 

Established  in 1998, MHP SE is the parent company of a leading international
food & agrotech group with headquarters in Ukraine, and production
facilities both in Ukraine and in the Balkans (Perutnina Ptuj Group).

 

Ukraine: MHP has the greatest market share and highest brand recognition for
its products. MHP owns and operates each of the key stages of chicken
production processes, from feed grains and fodder production to egg hatching
and grow out to processing, marketing, distribution and sales (including
through MHP's franchise outlets). Complete vertical integration practically
eliminates MHP's exposure to raw material price fluctuations since its grain
production exceeds internal consumption requirements, allowing the Company to
be an important participant in the international commodity trade.  In
addition to cost efficiency, vertical integration also enables MHP to maintain
strict biosecurity and to control the quality of its inputs and the resulting
quality and consistency of its products all the way to the point of sale. To
support its sales, MHP maintains a distribution network consisting of nine
distribution and logistical centers within major Ukrainian cities. MHP uses
its own truck fleet to distribute its products, reducing overall
transportation costs and delivery times.

 

MHP also has a leading grain cultivation business growing corn, soya and
sunflower to support the vertical integration of its chicken production and
increasingly other grains, such as wheat and rapeseed, for sale to third
parties. MHP leases agricultural land located primarily in the highly fertile
black soil regions of Ukraine.

 

The Balkans: Perutnina Ptuj (PP) is a leading poultry and meat-processing
producer in the Balkans, with production sites in four Balkan countries:
Slovenia, Croatia, Serbia, Bosnia and Herzegovina. PP owns distribution
companies in Austria, Macedonia and Romania and supplies products to fifteen
countries in Europe. PP is vertically integrated across all states of chicken
meat production - feed, hatching eggs production and incubation, breeding,
slaughtering, sausage production and further poultry processing.

 

MHP trades on the London Stock Exchange under the ticker symbol MHPC. For more
information, visit mhp.com.ua (https://mhp.com.ua/en/)

 

 

Contact Information:

 

MHP SE

Ms. Anastasiya Sobotyuk, IR Director

Tel. +35799767126/ +380503392999

Email: a.sobotyuk@mhp.com.ua (mailto:a.sobotyuk@mhp.com.ua)

Office EB1, 3-7 Arch Bishop Makario III Ave

6017 Larnaca, Cyprus

www.mhp.ua (http://www.mhp.ua) , www.mhp.com.cy

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