NADEC announces the signing of a non-binding memorandum of understanding with OLAM International Limited, Al Rajhi International for Investment company and Abdulaziz Alajlan & Sons Company for Commercial and Real Estate Investment to form a consortium for the Joint Bid to acquire a flour mill out of two flour mills that will be offered for privatisation by the Saudi Grains Organization.

Element List	Explanation
Introduction	The National Agricultural Development Company "NADEC" signed a non-binding memorandum of understanding (“MOU”) to form a consortium for the Joint Bid to acquire a flour mill (the “Mill”) out of two flour mills that will be offered for privatisation by the National Center for Privatization and the Saudi Grains Organization (the “Joint Bid”).
Memorandum Signing Date	2021-01-11 Corresponding to 1442-05-27
Counterparty	OLAM International Limited, Al Rajhi International for Investment company and Abdulaziz Alajlan & Sons Company for Commercial and Real Estate Investment (the “Parties”). The Parties and the National Agricultural Development Company “NADEC” shall be referred to as (the “Consortium”).
Memorandum Subject	The National Center for Privatization and the Saudi Grains Organization in the Kingdom of Saudi Arabia intend to privatise two flour production mills, as part of the plan and program of the Kingdom's 2030 vision to enhance the utilization of government assets, improve their operational efficiency, attract local and international investments, raise the private sector's contribution to the GDP and the support of the local market in general.

Based on the continuous desire of NADEC to develop and grow and play its roles to achieve food security, NADEC has signed the MOU to form a consortium for the Joint Bid to acquire the Mill.

The MOU also aims to define the basis on which the Parties will start to negotiate the conclusion of a joint venture agreement (the “JV Agreement”) in the event that the Joint Bid is awarded to the Parties.

It should be noted that the JV Agreement will then aim to regulate the relationship between the parties of the Consortium as partners in a holding company to be established in the Kingdom of Saudi Arabia for the purpose of owning and operating the Mill (the “Holding Company”).

The value of the Joint Bid will be determined by the agreement of the Parties and after completing the financial and legal due diligences on the Mill.

The conclusion of the JV Agreement and the incorporation of the Holding Company will then be pending on the acceptance of the Joint Bid by the Saudi Grains Organization and awarding the Mill to the Parties.

The ownership percentages of the Parties in the Holding Company will also be finally determined after the Saudi Grains Organization’s acceptance of the Joint Bid and awarding the Mill to the Parties. Memorandum Duration The MOU shall be deemed effective from the signing date until the date of its termination or expiry in accordance with the applicable terms of the MOU. Related Parties The Vice Chairman of the Board of Directors in NADEC, Eng. Ibrahim Abuabat has an indirect interest as he a board member in Al Rajhi International for Investment company. Financial Impact The financial impact will be announced upon signing the definitive agreement.

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