JAZADCO, ARTEX announce MoU to sell entire stake in RESRECO

Logo of Jazan Development and Investment Co. (JAZADCO)

Jazan Development and Investment Co. (JAZADCO) and ARTEX Industrial Investment Co. (ARTEX) announced that Al Reef Sugar Refining Co. (RESRECO) signed a binding memorandum of understanding (MoU) on all shareholders, including JAZADCO and ARTEX to sell their entire holding in the company. The MoU is non-binding on the buyer, Ethraa Holding.

In a statement to Tadawul, JAZADCO said that Ethraa Holding will be required to provide financial guarantees for all creditors—primarily the Saudi Industrial Development Fund (SIDF)—to cover RESRECO’s outstanding loans and previous shareholder guarantees.

JAZADCO and ARTEX each own 15% of RESRECO’s SAR 300 million capital (divided into 30 million shares at SAR 10 each). Both companies have written off the full value of their investments as of the audited financial statements as of Dec. 31, 2024.

Ethraa Holding will conduct financial, legal, operational, and technical due diligence. RESRECO is obligated to provide all necessary information during the MoU’s 60-day term.

If due diligence is favorable, all shareholders, including ARTEX, must complete the deal as per the final agreed terms and provide guarantees for RESRECO’s obligations, including the SIDF loan.

The MoU was signed on June 21, 2025, and is renewable by written agreement.

If the deal proceeds, JAZADCO expects to reverse a SAR 100.8 million SIDF loan guarantee provision, while Artex expects a potential positive financial impact from reversing the SIDF loan’s SAR 100 million provision.

JAZADCO noted that the MoU aligns with its strategy to reduce the financial impact arising from RESRECO. Both companies confirmed there are no related parties and will announce any updates as available.