BILDCO signs milestone MoU to acquire 50% stake in AG Group

Gulf Today, Staff Reporter

Abu Dhabi: Abu Dhabi National Company for Building Materials (BILDCO), an Abu Dhabi Securities Exchange (ADX)-listed company, announced the execution of a Strategic Acquisition Framework Memorandum of Understanding (MoU) with AG Group, setting out the agreed framework under which BILDCO will acquire a 50 per cent equity interest in AG Group, subject to the approval of the General Assembly of BILDCO and the completion of agreed conditions precedent, including due diligence, independent valuation, definitive transaction documentation, corporate approvals and applicable regulatory approvals.

The transaction represents one of the most significant strategic milestones in BILDCO's history and marks the commencement of the Company's long-term transformation into a diversified investment holding group through disciplined acquisitions, strategic partnerships and long-term value-enhancing investments.

The Strategic Acquisition Framework Memorandum of Understanding was signed in Abu Dhabi during a high-level meeting attended by senior representatives of both organisations.

The signing ceremony was held in the presence of Nasser Mohammed Al Junaibi, Deputy Director General for Operational Affairs of the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), together with senior executives and leadership representatives of ADAFSA, reflecting the importance of continued collaboration between leading public and private sector institutions in support of the UAE's sustainable economic development and future growth.

Bringing together BILDCO (Since 1974) and AG Group (Since 1970), the proposed partnership combines more than five decades of experience from each organisation and over a century of collective business heritage.

Together, the two companies intend to establish a long-term strategic platform focused on sustainable growth, disciplined investment, innovation and long-term value creation.

Upon completion, BILDCO will become a 50 per cent strategic shareholder in AG Group, creating a unique partnership that combines complementary expertise, financial strength and strategic capabilities while expanding opportunities across multiple sectors and supporting the Company's long-term vision of becoming one of the UAE's leading diversified investment holding groups.

Nasser Mohammed Al Junaibi, Deputy Director General for Operational Affairs at the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA), said: “Strategic partnerships between public and private sector institutions reflect ADAFSA’s commitment to strengthening food security and enhancing supply chain efficiency, in line with the vision of the UAE’s leadership and Abu Dhabi’s aspirations to build a sustainable and advanced economy. Collaboration with leading national companies helps drive innovation, and support ADAFSA’s efforts to develop more resilient food infrastructure capable of meeting future requirements.”

Rashid Ali Rashid Al Omaira, Chairman of the Board of Directors of Abu Dhabi National Company for Building Materials PJSC (BILDCO), said:

"This transaction represents a strategic turning point in BILDCO's journey and reflects the Board of Directors' commitment to implementing an ambitious vision aimed at repositioning the Company and strengthening its market position, thereby delivering sustainable growth and long-term value for our shareholders.

AG Group has established an outstanding track record spanning more than five decades of success and operational excellence. We believe that this partnership brings together the complementary expertise, capabilities and financial strengths of both parties, creating a strong investment platform capable of delivering sustainable added value for all stakeholders.

We are confident that this step will mark the beginning of a series of strategic initiatives and investments that will enhance BILDCO's competitiveness, support the UAE's vision of building a diversified and sustainable economy, and reinforce the Company's position as one of the leading investment companies listed on the Abu Dhabi Securities Exchange.

Shamsa Al Fahim, Acting Chief Executive Officer and Board Member of BILDCO, said: "This Memorandum of Understanding marks an important milestone in BILDCO's growth strategy as we continue to pursue partnerships that create long-term value for our shareholders and contribute to the UAE's economic ambitions. AG Group has built an outstanding reputation through decades of operational excellence, diversification, and disciplined growth. We have great confidence in their leadership, capabilities, and vision, and look forward to exploring opportunities that create mutual value while supporting the nation's long-term development priorities."

Mr. Javid Gholami, Chairman and Group Chief Executive Officer of AG Group, said:

"We are honoured by the confidence BILDCO has placed in AG Group. This partnership reflects a shared commitment to transparency, excellence, and long-term growth. BILDCO's distinguished legacy, institutional strength, and strategic vision make it an ideal partner as we continue our next phase of expansion. Together, we look forward to unlocking new opportunities that create lasting value for both organisations and contribute to the UAE's future economy."

Abu Dhabi National Company for Building Materials PJSC (BILDCO) was established in 1974 and is a public joint stock company listed on the Abu Dhabi Securities Exchange (ADX). Over the past five decades, BILDCO has played an active role in the growth and development of the infrastructure sector in the United Arab Emirates and has built a strong reputation as an innovative, high-quality company in the construction industry. BILDCO offers a wide and diverse range of high-quality building materials products and is committed to delivering integrated solutions to its customers.

AG Group is an integrated UAE business group headquartered in Dubai, with operations spanning the trading of fresh fruits and vegetables, juice manufacturing, logistics services, real estate, and agriculture through several operating entities, including a juice manufacturing facility and an international trading company.

The Group serves a customer base of more than 1,000 clients, including leading names such as Etihad Airways, Emirates Flight Catering, Majid Al Futtaim, Americana, and ADNH Compass, and employs more than 1,000 personnel supporting an integrated supply chain.

Its operations are underpinned by a robust infrastructure comprising a 3-hectare facility in the heart of Dubai, featuring 22 warehouses, 80 loading bays, and a fleet of 351 vehicles, in addition to real estate assets and a 100-hectare farm in Africa.