Al Babtain Food to sell 3% equity in Chocolate Lake

ALBABTAIN FOOD
9549 9.88% 27.58 2.48 2P
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Riyadh – Mubasher: Abdulaziz & Mansour Ibrahim Albabtin Company (Al Babtain Food) has signed a binding sale and purchase agreement to sell its total 3% stake in Chocolate Lake for manufacturing chocolate and sweets.

The stake, consisting of 1,800 shares, is being sold to Indulgent Food International Holding Company Limited, a firm registered in the Dubai International Financial Centre.

The transaction is part of a larger acquisition where the buyer is purchasing a 70% stake in the Jordanian limited liability company from various selling shareholders.

Total equity value of Chocolate Lake was set at $171 million before adjustments.

Al Babtain Food is entitled to 4.29% of the total consideration allocated to the selling shareholders, though the final amount remains subject to adjustments for expenses, leakage, and insurance costs.

The book value of the stake is SAR 3.64 million according to the company's latest financial statements. The agreement includes a potential earn-out based on financial performance in 2027 and 2028, while $5 million will be held in escrow for three years to cover potential claims.

Al Babtain Food expects the financial impact to materialize in the fourth quarter (Q4) of 2026, with proceeds used to support its financial position and strategic plans.

In June, the listed company’s shareholders approved a dividend payout of SAR 1.70 million, representing 5% of the capital, for 2025.

Source: Mubasher Source: {{details.article.source}}