16/09/2005 (Business Times) - GOLDEN Hope Plantations Bhd has bought a40 per cent stake in Savola Morocco S.A., a subsidiary of Saudi Arabia'spublic-listed company Savola Edible Oils Co Ltd for RM45.8 million.

In a statement yesterday, Golden Hope said the partnership is a steptowards implementing phase 1 of the collaboration agreement signed by bothparties in April 2005.

Under phase 1 of the agreement, Golden Hope and Savola will collaborate asstrategic partners through their respective operations in Vietnam andMorocco.

"The business collaboration involving Vietnam is expected to take place inthe next few months," Golden Hope said.

At the signing ceremony yesterday, Golden Hope and Savola were representedby group chief executive Datuk Sabri Ahmad and group managing director DrAbdulraouf Mannaa respectively.

With the purchase, Golden Hope will be able to enter the branded consumerand retail business of edible oils and fats in the growing West Asianmarket apart from leveraging on Savola's established brands.

The acquisition is also in line with Golden Hope's strategy to expand itsdownstream operations by increasing its presence in manufacturing,international marketing and distribution of branded consumer packed edibleoils and fats.

Under the agreement, two joint venture companies will be formed - an Asiancompany for projects in Asia, southern Africa and Europe, of which GoldenHope will have a 60 per cent stake and Savola will hold the remaining 40per cent.

The second joint-venture company will be in charge of West Asia, northernand western Africa and the equity allocation is reversed with Golden Hopeowning 40 per cent while Savola having 60 per cent.

Savola Edible is principally involved in the retail cooking oil segmentsin Saudi Arabia, Egypt and Jordan and started operations in July 2004.

It owns the largest retail food chain in West Asia apart from a sugarrefinery, plastic and glass manufacturing companies, dairy factory as wellas a fast food chain.

Savola Morocco is a public-listed company incorporated in November 2002.It is principally involved in the production of edible oils and in thepurchase, sale, import, export and marketing of food products.