UPDATE 1-Saudi Almarai to invest $533 mln in Hail buy-report

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RIYADH, Nov 8 (Reuters) - Saudi-based Almarai Co 2280.SE will invest 2 billion riyals ($533.3 million) to expand the business of Hail Agricultural Development Co (Hadco) it acquired recently, a Saudi newspaper reported on Sunday.

Chairman Prince Sultan Mohamed Saud al-Kabeer al-Saud said the Gulf's biggest dairy firm by market value would focus these investments on raising Hadco's poultry output fivefolds to an average of 120,000 chicken per hour, al-Eqtisadiah newspaper quoted him as saying.

Almarai paid $253.2 million in cash and stock to complete its takeover last month and enter the lucrative poultry business.

The takeover is the first involving two Saudi listed firms.

Almarai has been diversifying its revenues through acquisitions and has earmarked 6 billion riyals ($1.6 billion) for investments to expand outside the Gulf Arab region. (Writing by Souhail Karam, editing by Amran Abocar and Sanjeev Miglani)