Saudi Arabia has sold two flour mills for a total consideration of SR2.777 billion ($740.38 million) under the first phase of the kingdom's flour milling sector privatisation programme.

The National Center for Privatization and PPP (NCP) and the Saudi Grains Organization (SAGO) announced that the first batch of the flour milling sector privatisation was completed through a full divestment of the First Milling Company and the Third Milling Company to qualified strategic investors.

The final binding financial bids were submitted on July 5 upon completion of due diligence during the bidding phase, said a Saudi Press Agency report.

The award of each milling company was decided based on the highest financial bids submitted by qualified strategic investors, which were thoroughly reviewed to ensure adherence to the terms stipulated in the request for proposal.The First Milling Company was awarded to Raha AlSafi Consortium pursuant to its bid amounting to SR2.027 billion, the highest financial bid submitted for this company. The Third Milling Company was awarded to AlRajhi – Ghurair – Masafi consortium following its bid amounting to SR750 million, the highest financial bid submitted to this company.

Meanwhile, qualification phase for the second and final stage of the privatisation of flour milling sector will launch shortly.