Saudi-based Almarai will raise its capital by 37.6 per cent, increasing Hail Agricultural Development's (Hadco) stake by 6 million shares, a bourse statement said on Wednesday.

Almarai, the Gulf's largest dairy firm, had offered in July to take over Hadco for $253 million and offered its shareholders one new Almarai share and SR2.5 ($0.67) for each five Hadco shares.

Almarai will increase its capital to SR1.15 billion ($307 million) from SR1.09 billion.

"The shares from this increase in capital, which amount to 6 million shares, will be exclusively for shareholders of Hadco as a part of the value of their shares," the statement said.

Almarai has been diversifying its revenues through acquisitions and has earmarked 6 billion riyals for investments to expand outside the Gulf Arab region.

Hadco, based in the north of Saudi Arabia, is the fourth largest poultry producer in the country.

Almarai shares closed at SR163, up 2.18 per cent on Tuesday, and Hadco closed at SR30.1, up 1.35 per cent. – Reuters