Saudi Arabia’s Grains Privatisation Committee and the Public Investment Fund (PIF) have invited firms to prequalify to bid by 26 August for the contract to own and operate four milling companies.

HSBC Saudi Arabia is the financial adviser for the proposed transaction, which is a key component of the privatisation of the kingdom's grains milling sector.

MEED understands companies that directly manage flour milling assets or are engaged in food processing and manufacturing in Saudi Arabia or internationally have been invited to prequalify for the contract.

A tender for the transaction is expected to be released following the prequalification process.

Other firms advising the committee on the project include US-based Strategy& as privatisation consultant; Irish firm Farrelly & Mitchell as due diligence and market consultant; UK-based PwC as financial due diligence consultant; Netherlands-based KPMG as accounting consultant; and the local/US team of Law Office of Salman M. al-Sudairi and Latham & Watkins as legal counsel.

The Grains Privatisation Committee is comprised of members from the Environment, Water and Agriculture, Finance, and Civil Service ministries, as well as the Saudi Arabia Grains Organisation (sago), PIF, and as the National Centre for Privatisation (NCP).

On 8 July, the NCP  issued a 50-page draft law outlining partnerships between the government and the private sector.

The NCP also invited the public to submit comments on the draft law by 29 July.

Once finalised, the law is expected to unlock SR35bn-40bn ($9.3bn-$10.7bn) from selling government assets and create 10,000-12,000 new private sector jobs as outlined in the kingdom’s 2020 Delivery Programme.