TADCO shareholders reject capital cut to offset losses

Shareholders authorized the current board of directors to take any actions deemed appropriate in the company’s best interest

Tabuk Agricultural Development Co.’s (TADCO) shareholders rejected the board of directors’ proposal to reduce the company’s capital by 52.94% from SAR 391.77 million to SAR 184.36 million to offset accumulated losses.

The decision was made during the extraordinary general meeting (EGM) held on Dec. 10, the company said in a statement to Tadawul.

In addition, shareholders approved canceling the decision of the ordinary general meeting (OGM) held on Sept. 25, 2024, regarding the board’s recommendation to exit its investment in Masader Agricultural Feed Mill Ltd.

The proposal involved selling all TADCO's shares in Masader Agricultural, representing 60% of Masader’s total shares, to partner Ahmed Hussein Al-Omari for SAR 7 million.

This includes the factory owned by the Ahmed Hussein Al-Omari Foundation, in which TADCO also owns a 60% stake.

The company explained that the exit would halt ongoing losses averaging SAR 4 million annually, generate SAR 7 million in cash proceeds, and yield net profits of SAR 9.6 million, which will be recorded directly in the profit and loss statement.

Shareholders also authorized the current board of directors to take any actions deemed appropriate in the company’s best interest.

They further approved amending the company’s Articles of Association to align with the new Companies Law and reorganizing and renumbering the articles to reflect the proposed changes.

According to data available with Argaam, TADCO’s accumulated losses reached SAR 256.59 million, equivalent to 65.5% of its capital, by the end of Q3 2025, while its working capital deficit stood at approximately SAR 155.5 million.