JAZADCO inks deal to set up aquaculture firm

Jazan Energy and Development Co. (JAZADCO) approved signing an agreement with Tabuk Fisheries Co. (TFC), Tharawat Seas, and Aquaculture Sharq Farms Co. to establish Advanced Aquaculture Co., as a new limited liability company.

The company said in a bourse filing on Monday that Advanced Aquaculture’s capital will be SAR 100,000. JAZADCO has changed its stake in the new entity to 25%, which will be financed from its own resources without transferring any assets.

JAZADCO noted that the dealparties are eying merger into one entity according to the evaluation that will be agreed upon. They also aim to hold talks with local or foreign investors and study opportunities to obtain financing from government development funds or any other option to proceed with the merger plan.

Advanced Aquaculture will contribute to realizing the Saudi Vision 2030 objectives in the aquaculture sector and sharing of Red Sea resources with consumers all over the world to achieve food security across the Kingdom. These goals will be realized through innovative and sustainable production systems in a move to set up a leading company in fish and shrimp farming.

In January 2020, JAZADCO signed a memorandum of understanding (MoU) with Tabuk Fisheries, Tharawat, and Sharq Farms to conduct a feasibility study of a potential merger with JAZADCO’s aquaculture business, data compiled by Argaam showed.