Huhtamaki's ownership in APPCO will increase to 50% and the operative territory of APPCO expands from the Gulf Cooperation Council (GCC) countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates to include also Middle Eastern and Northern African countries of Algeria, Egypt, Iran, Iraq, Lebanon, Libya, Morocco, Pakistan, Palestine, Sudan, Syria, Tunisia and Yemen.
At the same time APPCO's product range is broadened to include all Huhtamaki Foodservice Europe-Asia-Oceania business segment's foodservice packaging products. The revised Shareholders' Agreement relating to APPCO enables Huhtamaki to consolidate the joint venture company as a subsidiary in the Group's financial reporting as of April 1, 2016.
As a result of the transaction, a non-recurring gain of approximately Euro 8 million will be booked in the 2Q 2016 in the Foodservice Europe-Asia-Oceania business segment. The additional shares are acquired at a price of approximately Euro 4 million.
APPCO is a joint venture company between Huhtamaki and OSHCO, operating in Al-Khobar, Saudi Arabia since 1985.
Huhtamaki is a global specialist in packaging for food and drink.
