RELEASE: Tanmiah Food Company and MHP SE improve food security in Saudi Arabia

- Tanmiah Food Company and MHP SE invest in poultry value chain to improve food safety in Saudi Arabia.

RELEASE: Tanmiah Food Company and MHP SE improve food security in Saudi Arabia

- Tanmiah Food Company and MHP SE invest in poultry value chain to improve food safety in Saudi Arabia

RIYADH, Saudi Arabia, September 11, 2023 /PRNewswire/ -- Tanmiah Food Company (TADAWUL: 2281, "Tanmiah" or "The Company") is pleased to announce the signing of the shareholders agreement between its wholly owned subsidiary, Desert Hills Veterinary Services Company Limited (DHV) and MHP SE (LSE: MHPC, 'MHP'), the leading international food and agritech group. This partnership will significantly increase 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 Tanmiah Board, His Excellency Sheikh Amr Al-Dabbagh, along with members of the board and executive leadership, officials of the Saudi government representing ministries, authorities, funds, and centers of excellence and the Ambassador of Ukraine, His Excellency, Anatolii Petrenko. MHP SE CEO Dr. John Rich and MHP MENA CEO Eugene Levterov represented the board of directors and MHP at the ceremony.

Building on the Memorandum of Understanding signed earlier this year, this partnership will allow DHV and MHP SE to join forces to invest more than SAR 200 million in agricultural operations with a capacity of more than 1 million head of livestock expected produce approximately 175 million hatching eggs per year, a state-of-the-art hatchery and poultry feed factory. DHV will have a 55% stake, while MHP will have a 45% stake in the joint venture.

Zulfiqar Hamadani, CEO of Tanmiah Food Company, commented: "Our collaboration with MHP is much more than just a partnership; it represents our commitment to strengthening Saudi Arabia's food security framework. Using our local knowledge combined with global best practices, “Our portfolio of best-in-class products, services and solutions demonstrate our commitment to our customers, partners and the broader goals of Vision 2030.”

Dr. John Rich, CEO of MHP SE, said: "Deepening our alliance with Tanmiah is a strategic linchpin in MHP's global reach. This partnership is emblematic of our shared vision of integrating international expertise with local expertise, ensuring Saudi Arabia's food security goals are met. Our collective strengths will catalyze transformative advances 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 fruitful long-term relationship that will benefit "Our organizations, the entire Kingdom of Saudi Arabia and the region. We will continue to seek strategic opportunities in the region, looking to capitalize on our experience."

Ahmed Bin Sharaf Osilan, Executive Board Member and CEO of Tanmiah Food Company, said: "Our partnership with MHP is a strategic step to deliver sustainable value to our stakeholders and make significant progress towards Vision 2030. As we work to advance food security and self-sufficiency in Saudi Arabia, we are building facilities that are critical to the entire poultry ecosystem in Saudi Arabia, increasing the contribution of the private sector to non-oil GDP, local employment opportunities and knowledge transfer."

The signing of the shareholders agreement is a decisive step in the establishment of the joint venture after the necessary approvals are obtained, including clearance from the General Competition Authority of Saudi Arabia and other relevant jurisdictions.

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