A partnership that includes Almarai [2280.SE] and U.S. agribusiness company Archer Daniels Midland is among potential bidders for state-owned Saudi Grains Organisation's (SAGO) milling operations, KSA’s sole supplier, according to sources close to the matter as quoted by Reuters. SAGO is preparing to sell off its milling operations by placing them in four specially formed corporate entities while retaining other functions as part of the privatisation of the business in line with the government’s “Vision 2030" reform plan. Other bidders for the business include Italian wheat supplier Casillo Group and a partnership of Turkey's TAV Group, a construction and airports conglomerate, as well as Saudi's Al Rajhi Holding Group. According to sources, SAGO is considering setting the deadline for pre-qualification of bidders in 3Q17. No details regarding the price of the deal were disclosed. 

Almarai: SAR69.25 as of 7 Mar. 2017, Rating: Neutral, TP: SAR54.50/share, MCap: USD14,773mn, ALMARAI AB/2280.SE