Go Back

News Releases

Al Dahra acquires assets of PKB Korporacija in Serbia for Euro 150 million

Abu Dhabi - United Arab Emirates

October 7th, 2018

BELGRADE, 7th October, 2018 (WAM) -- Al Dahra, a UAE-based international conglomerate, specialising in the agribusiness, today signed a Sale and Purchase Agreement for acquiring the assets of PKB Korporacija and its subsidiaries in Serbia for Euro 150 million, through an asset sale model transaction.

The acquisition is being undertaken as a result of Serbia’s objective to privatise PKB Korporacija, and follows a public tender issued in August 2018.

The agreement was signed by Khadim Al-Derei, Vice Chairman and Managing Director of Al Dahra, and Dragan Stepanovic, Serbian Deputy Minister of Economy, in the presence of Mubarak Saeed Ahmed Bershid Al Dhaheri, UAE Ambassador to Serbia.

The operations that will be acquired from PKB Korporacija cover several different agricultural and food sector activities. In terms of farming, Al Dahra will manage and cultivate more than 50,000 acers of farmland, which is spread across eight farms, strategically located at close proximity to Belgrade city centre.

The different crops that will be produced include sugar beet 491 hectares; sunflower 2,136 hectares; wheat 3,552 hectares; corn 636 hectares; barley 1,454 hectares; soya 2,621 hectares; oilseeds 1,141 hectares; forage 2,322 hectares; silage 2,775 hectares; and a compound of feed and several vegetable varieties.

Al Dahra will manage the dairy operation and livestock business, which sell to the milk and meat production industries in Serbia.

Al Dahra has agreed, as part of the transaction, to invest Euro 30 million over the coming three years to enhance the farms, upgrade the irrigation infrastructure and modernize the dairy operation facilities. However, Al Dahra expects and is willing to invest a further Euro 15 million to optimise the farm and facilities.

Commenting on the announcement, Al-Derei stated, "The signing of the agreement is a special day for the UAE and Serbia. The addition of the PKB assets to our existing portfolio reinforces our position in Serbia and our regional presence in Europe and complements our vertical integration strategy, allowing the group to further grow in the grains trading, dairy and livestock segments. Al Dahra is committed to capitalise on the expertise and knowledge of the existing PKB workforce and is equally committed to maintain PKB products as a source of supply for Serbian citizens, building on its tradition.

"We believe that the privatisation of PKB and the investments that Al Dahra will be injecting to upgrade the existing operations and infrastructure, will enhance the commercialisation and internationalisation of Serbian crops and will ultimately benefit the Serbian farmers, traders and wider agricultural sector. Al Dahra looks forward to strengthening its relationship and ties with Serbia and the Serbian people through its investments in Serbia," he added.

In turn, Al Dhaheri said that this agreement reflects the credibility and mutual trust between the UAE and Serbia, pointing out that the acquisition of BKP by Al Dahra is a culmination of the durability of the relationship between the two countries and a solid proof of the great reputation that Al Dahra has in the international market.

For his part, Stepanovic valued the UAE-Serbian relations, particularly in the economic, trade and investment fields, saying, "We thank the UAE and Al Dahra in particular for choosing Serbia as an economical partner, as this is not a new initiative, the cooperation between the two countries are vast."

He also emphasised the importance of this agreement which came as a result of the continuous hard work by the two parties, pointing out that Al Dahra is an important partner for the Serbian government and is capable to take this partnership to a global level.

Al Dahra will be working jointly with Serbia to complete the transaction and assets’ transfer over the coming period; ensuring a smooth transition for all parties involved.

In the newspaper

http://185.54.19.210/en/details/1395302712464

Go Back

Media Contact

For all media related queries, please contact:


Al Dahra Holding

Abu Dhabi, United Arab Emirates

T :+971 2 6565000
F :+971 2 6565001
E :media@aldahra.com

200K acres

land portfolio including leased and owned land across various geographies

20+ countries

with established operations spread across the Northern and Southern globe hemispheres

30+ entities

trading in various commodities across the Human Food and Animal Feed divisions

1B+ USD

annual group turnover

51%

group average CAGR over the past 5 years

1M MT

group annual grains processing, trading and supply capacity

2M MT

group annual forage production and supply capacity

150K MT

group annual fruits and vegetables farming and supply capacity

#1

customer of Khalifa port in the United Arab Emirates

Etihad Mills

Grain biggest trading hub in the Middle East, that can cater to 2.4 Billion people.

Al Dahra ACX Global

Al Dahra ACX Global number 1 forage exporter in the USA for 2015

ISO 9001:2015

Al Dahra Agriculture is ISO 9001:2015 certified.