LOULIS FOOD INGREDIENTS S.A.

STRATEGIC ALLIANCE LOULIS MILLS-AL DAHRA

 

P R E S S   R E L E A S E

STRATEGIC ALLIANCE

LOULIS MILLS – AL DAHRA

 

Keratsini, 21st May 2013

 

 

LOULIS MILLS S.A. Company would like to take this opportunity to inform the investment community that the AL DAHRA AGRICULTURE SPAIN S.L. Company acquired today 1,522,228 shares in LOULIS MILLS, namely 10 % of the share capital.

                                                                                                                     

In accordance with the Agreement that was signed today between LOULIS MILLS S.A. and AL DAHRA AGRICULTURE SPAIN S.L., AL DAHRA will cover a Share Capital Increase through a private placement in the sum of 7,8 mil Euros pursuant to which it will acquire an additional share, so that its total participation after the share capital increase will amount to 20 %.

 

LOULIS MILLS S.A. will undertake all the necessary processes so that this increase is completed as soon as possible.

 

The foundations of this deal that was finalised yesterday were established in November 2012 in theAbu DhabiPalacebetweenNikos Loulis, Chairman of Loulis Mills and His Excellency Khadim Al Darei, vice-chairman of Al Dahra.

 

AL DAHRA AGRICULTURE

 

AL DAHRA AGRICULTURE SPAIN S.L. is a 100 % subsidiary of Al Dahra Holding LLC (Al Dahra). The Al Dahra Company is based atAbu Dhabiin the United Arab Emirates (UAE). It has made investments in the UAE,USA,Spain,Serbia,Egypt,South Africa,India,Morocco,NamibiaandPakistan.

 

It is active in the agricultural sector and specialises in the production of agricultural products and animal feed. Al Dahra is the strategic partner for theAbu Dhabigovernment in the food security program (Food Security Vision).

 

Al Dahra is now a leading company in the production and distribution of high quality agricultural products and, more specifically, it produces products that include wheat, rice, alfalfa, animal feed, vegetables, dates, olives and citrus. In 2012 Al Dahra cultivated 150,000 hectares of freehold and leased land and produced in total over 2,000,000 tonnes of products in 10 different countries. In 2012 its revenues reached 500 mil. €, and it employed 1,300 people.

 

The company's goal, through its investments in primary and secondary production in various countries throughout the world, is to ensure the continuous and smooth flow of food to both the UAE government and other countries in middle-east and north-eastAsiathrough trans-national food support programmes.

 

COOPERATION

 

The cooperation between the Loulis Mills and the Al Dahra company opens new frontiers.

 

Specifically, in relation to Loulis Mills:

 

  1. It directly links the company with primary grain production and logistics of grains, which to a large extent ensures qualitative stability and the quantitative adequacy of raw materials;
  2. It closely links the company with Arab countries that have a large population increase and are predominantly flour importers. These countries can now be easily supplied with flour from Al Dahra through Loulis Mills' two modern harbour side mills; and
  3. This opens the way for penetration into the developing markets ofAfricaandAsia, which generate 85 % of the annual global population growth.AsiaandAfricatogether grow by about 70 million people annually and are markets with huge economic development.
  4. It lays stronger financial foundations for further development.

In relation to Al Dahra:

                                                                                                    

  1. It will gain access to a high-level transit hub for cereals inEurope, through the Loulis Mills harbour side facilities atVolosandPiraeus, which have a total storage capacity of 90,000 tonnes. Al Dahra will accordingly be able to forward its production from European countries (SpainandSerbia) to theMiddle East;
  2. It will ensure the flow of flour with a guaranteed, excellent and consistent quality to Arab countries, with many of which it has long-term contracts for supplying food; and
  3. It will acquire the know-how for constructing cereal mills, so that it can complete the construction of high standard mills in countries where it operates, which will pave the way for dynamically entering into secondary production.

 

This move by the Loulis Mills management and its Chairman MrNikos Louliswill place Loulis Mills at the centre of development with access to four continents (Asia, Africa, America and Europe), where 97 % of the world's inhabitants live.

 

Loulis Mills have now laid sound foundations for further development with two strategic alliances, by combining access to developing markets with a strong financial basis: the Austrian Raiffeisen Bank through the Good Mills Group and the United Arab Emirates through Al Dahra.