HBG Holdings appoints new Chairman

Abdallah Al-Mouallimi has a distinguished track record having held senior Government, executive positions and directorships over the last 30 years. He served at the highest levels of Saudi Government most notably when he was appointed to the Majlis Al-Shura or the National Consultative Council. He served on the Council from 1997 to 2001. In business he was Vice-Chairman of Olayan Financing Company from 1991 to 1998, Board Member of Saudi Telecom and Member of the General Organisation for Military Industries.

"We are delighted to welcome Abdallah Al-Mouallimi to the HBG Board. He brings considerable experience as an international business leader, in particular around investment in, and integration of acquisitions and in building and managing businesses in competitive markets.

'He also brings vast knowledge and understanding of Saudi Arabia, one of the most important markets in the region for HBG. This experience will be invaluable at a time when the Group is expanding through a series of acquisitions and mergers," said Zulfi Hydari, Managing Director of HBG Holdings.

A former Mayor of Jeddah, a post he held until 2005, Abdallah Al-Mouallimi has also held the positions of Vice Chairman and subsequently Chairman of both the Riyadh and Jeddah Chambers of Commerce, respectively.

Mr Al-Mouallimi is currently President of Dar Al-Mouallimi Consulting. He is also Member of the Consulting Commission to the Supreme Council of the Gulf Cooperation Council, Board Member of National Commercial Bank as well as Allujain Corporation and Assir Establishment for Press. He is also Advisor to The Olayan Group and Managing Director of The Coca-Cola Bottling Company of Saudi Arabia.

He joins HBG Holdings at a time when the company is gearing up for rapid expansion.

The company is now focused on growing through strategic acquisitions across the Middle East and South Asia region (MESA). These will primarily be in the fields of consumer products, logistics and retailing, the latter which continues to be one of the company's core strengths.

This new strategy has been given significant impetus through a US$100 million private placement, further underpinning what is an aggressive three part expansion programme.

This major investment followed a JD 17.6 million (US$25 million) in its Jordan subsidiary - HBG Marketing Jordan (formerly Spinneys Jordan) in the summer 0f 2006.

"We have successfully invited prominent new shareholders - such as Abdallah Al-Mouallimi to co-invest in our ventures and we will also be accessing regional capital markets to fund our expansion," said Hydari

HBG's vision is to spearhead the consolidation of the industry via acquisition of regional manufacturing, distribution and retail companies.

"Funds will therefore be invested in companies that can demonstrate regional expansion capability and have one or more of the following: manufacturing capacity, warehousing and logistics networks and ownership of FMCG brands," adds Hydari. "The key words in this programme are scale and consolidation."