Tanmiah Food Company, commonly referred to as Tanmiah, is excited to share the news of the finalized shareholder agreement between its wholly-owned subsidiary, Desert Hills Veterinary Services Company Limited (DHV), and MHP SE (LSE: MHPC), a prominent global leader in the food and agrotech industry. This collaboration is poised to have a substantial impact on enhancing food security and poultry self-sufficiency in Saudi Arabia.
The signing event took place in Jeddah on September 7, 2023, and was graced by the presence of prominent figures. Among those in attendance were His Excellency Sheikh Amr Al-Dabbagh, Chairman of the Board of Tanmiah, along with board members and top executives. The event also saw the participation of Saudi Government officials representing various ministries, authorities, funds, and centers of excellence, as well as the Ambassador of Ukraine, His Excellency Mr. Anatolii Petrenko.
Representing MHP SE at the ceremony were Dr. John Rich, the Executive Chair, and Eugene Levterov, the MENA Managing Director, both of whom played pivotal roles in the proceedings.
Expanding upon the groundwork established through the previously signed Memorandum of Understanding earlier this year, this collaboration will witness DHV and MHP SE uniting their efforts in a substantial investment exceeding SAR 200 million. The investment will be directed towards farming operations designed to accommodate over 1 million parent stock, with the goal of yielding approximately 175 million hatching eggs annually. Additionally, state-of-the-art facilities, including a cutting-edge hatchery and a poultry feed mill, will be established as part of this initiative.
In terms of ownership, DHV will possess a majority stake of 55%, while MHP will hold a 45% stake in this 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 Chairman 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 execution of the shareholder agreement marks a crucial milestone in the establishment of the joint venture company. This pivotal step comes after obtaining the required approvals, which include clearance from the General Authority for Competition of Saudi Arabia and other pertinent jurisdictions.
