Muscat – Salalah Mills Company has acquired a 50% stake in a Yemen-based grain mills and silos company with an estimated cost of approximately RO2.5mn, according to a company disclosure to the Muscat Stock Exchange.

Earlier in August 2023, Salalah Mills Company had announced that it was studying investment opportunities in the grain milling and silos sector in the Republic of Yemen.

‘On January 10, 2024, based on legal and financial studies, Salalah Mills Company signed an agreement to enter into a partnership by acquiring 50% of the shares of Al-Rayyan Grain Mills and Silos Company and its assets in Yemen – Hadhramaut Governorate, the city of Mukalla, with an investment estimated at approximately RO2.5mn,’ the company said in its disclosure to the Muscat Stock Exchange.

Previously, on November 10, 2023, Salalah Mills’ board of directors had approved the establishment of a limited liability company (LLC) named ‘Yemeni-Omani Food Company LLC,’ headquartered in Yemen, for the import and distribution of grains into Yemen.

Yemeni-Omani Food Company’s authorised capital is $25mn, and the paid-up capital is 50% of the authorised capital. Salalah Mills Company owns a 50% share, and the Yemeni partner owns the remaining percentage. The partnership will be financed through commercial loans, as Salalah Mills had stated at that time.