Saudi-based Savola Group has raised its stake in fellow Saudi food firm Almarai Company to 36.5 per cent by purchasing shares worth 2 billion riyals ($533 million), Savola said in a statement on Wednesday.

The purchase, which increases its holding in the company from 29.95 per cent, was "in line with the group's strategy of further growing its exposure in its core sectors, of which the foods sector is one of them," Abdulraouf M Mannaa, group managing director at Savola, said in the statement.

Savola financed the deal with its own cash reserves and Islamic loan financing provided by local banks.

Samba Capital, the investment banking arm of Samba Financial Group, acted as financial consultant on the transaction, the filing to the Saudi bourse added. – Reuters