Sense Gourmet offer oversubscribed by more than 239%
January 21, 2006 (Press Release) --
The Abu Dhabi National Foodstuff Company (Foodco) collected more than US$ 10.62 million instead of the required US$ 4.5 million following an overwhelming response from its existing shareholders to a 50% share offer for its subsidiary Sense Gourmet, a private joint stock company.
Existing shareholders of Foodco oversubscribed the company’s offer by more than 239% within a week of the announcement.
Foodco had offered 16.5 million common stocks on a par value of AED 1 per share. Sense Gourmet was set up in October 2005 with a capital of AED 33 million. The shares are expected to be listed on the Abu Dhabi Securities Market (ADSM) in the fourth year of the company’s operations.
“Our shareholders have once again proved that they have enormous faith in the company. With the subscribed amount, the total capital of Sense Gourmet now stands at AED 56 million including Foodco’s share of AED16.5 million,” said Foodco’s Managing Director and Member of the Board of Directors, Mr. Ahmed bin Ali Khalfan Al Dhahery.
Sense Gourmet was set up as a subsidiary of Foodco to expand into catering, restaurant franchise and other retail operations in the hospitality sector. The company was formed with a specific purpose of establishing high-potential restaurants across GCC countries in partnership with renowned restaurant operators as well as catering services.
“The shareholder response gives us the necessary impetus to go ahead and implement our well-laid out strategies for Sense Gourmet. We have great plans for our subsidiary and we are sure the company will make its mark in the industry,” added Mr. Al Dhahery.
Over an expected investment horizon of five years, shareholders will get yield in the region of nearly 37%, remarked Mr. Al Dhahery.
The company will also deploy its capital in potentially high yield investment opportunities, especially in restaurants business. Currently the focus is on the GCC countries, the neighbouring MENA region and South Asia.
“Sense Gourmet is projected to generate more than 36% additional turnover annually for Foodco. The already vigorous bottom line of Foodco will get a further stimulus with Sense Gourmet. But more importantly, we are sure Sense Gourmet will ensure better returns for our shareholders besides bringing further enhancement to our profitability,” remarked Mr. Al Dhahery of Foodco.
Foodco, the parent company, is already in the process of setting up a AED200 million industrial zone for foodstuffs in Abu Dhabi which could be achieved on the same basis as sense gourmet namely, 50% current shareholder and 50% Foodco.
Foodco is a public shareholding entity that operates under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, the President of the UAE. The company is head quartered in Abu Dhabi with branches in Dubai and Al Ain.
Foodco is a public shareholding entity that operates under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, the President of the UAE. The company is head quartered in Abu Dhabi with branches in Dubai and Al Ain.
-End-
For more information, please contact:
BIZ COM – For PRoactive Communications
Tel: +971 4 332-0888
Fax: +971 4 332-0999
Email: info@bizcom.ae
Existing shareholders of Foodco oversubscribed the company’s offer by more than 239% within a week of the announcement.
Foodco had offered 16.5 million common stocks on a par value of AED 1 per share. Sense Gourmet was set up in October 2005 with a capital of AED 33 million. The shares are expected to be listed on the Abu Dhabi Securities Market (ADSM) in the fourth year of the company’s operations.
“Our shareholders have once again proved that they have enormous faith in the company. With the subscribed amount, the total capital of Sense Gourmet now stands at AED 56 million including Foodco’s share of AED16.5 million,” said Foodco’s Managing Director and Member of the Board of Directors, Mr. Ahmed bin Ali Khalfan Al Dhahery.
Sense Gourmet was set up as a subsidiary of Foodco to expand into catering, restaurant franchise and other retail operations in the hospitality sector. The company was formed with a specific purpose of establishing high-potential restaurants across GCC countries in partnership with renowned restaurant operators as well as catering services.
“The shareholder response gives us the necessary impetus to go ahead and implement our well-laid out strategies for Sense Gourmet. We have great plans for our subsidiary and we are sure the company will make its mark in the industry,” added Mr. Al Dhahery.
Over an expected investment horizon of five years, shareholders will get yield in the region of nearly 37%, remarked Mr. Al Dhahery.
The company will also deploy its capital in potentially high yield investment opportunities, especially in restaurants business. Currently the focus is on the GCC countries, the neighbouring MENA region and South Asia.
“Sense Gourmet is projected to generate more than 36% additional turnover annually for Foodco. The already vigorous bottom line of Foodco will get a further stimulus with Sense Gourmet. But more importantly, we are sure Sense Gourmet will ensure better returns for our shareholders besides bringing further enhancement to our profitability,” remarked Mr. Al Dhahery of Foodco.
Foodco, the parent company, is already in the process of setting up a AED200 million industrial zone for foodstuffs in Abu Dhabi which could be achieved on the same basis as sense gourmet namely, 50% current shareholder and 50% Foodco.
Foodco is a public shareholding entity that operates under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, the President of the UAE. The company is head quartered in Abu Dhabi with branches in Dubai and Al Ain.
Foodco is a public shareholding entity that operates under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, the President of the UAE. The company is head quartered in Abu Dhabi with branches in Dubai and Al Ain.
-End-
For more information, please contact:
BIZ COM – For PRoactive Communications
Tel: +971 4 332-0888
Fax: +971 4 332-0999
Email: info@bizcom.ae
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