RIYADH — The National Agricultural Development Company (Nadec) announced the awarding of joint tender offered by Nadec and the “coalition members” to acquire one out of two flour mills that were floated for privatization by the National Center for Privatization and Saudi Grains Organization.

The value of the contract stands at SR2.138 billion, where financing the acquisition deal is intended to be provided to the second mill company through a mix of self-finance by the coalition members and a loan from local banks with the name of the company.

The deal stipulates that the agreement of the coalition members on several terms and conditions related to the commercial activities, administrative services and operational services of the second mill company.

The deal is planned to include an agreement that governs Nadec’s purchase of certain products from the second mill company and an agreement under which Nadec offers administrative, marketing, and supporting services to the second mill company, according to negotiations and understandings reached under the final agreements. — SPA