JAZADCO, ARTEX say RESRECO-Ethraa MoU terminated

Jazan Development and Investment Co. (JAZADCO) and ARTEX Industrial Investment Co. (ARTEX) announced on Dec. 22 terminating the memorandum of understanding (MoU) signed between Al Reef Sugar Refining Co. (RESRECO) and Ethraa Holding, after the requirements related to the proposed acquisition were not fulfilled.

 

The companies stated that the termination does not result in any financial or legal obligations for either party.

 

In separate statements to Tadawul, both companies said that RESRECO is currently undergoing financial restructuring procedure (FRP) pursuant to a court ruling issued by the competent court on Nov. 10, 2025, and under the supervision of a court-appointed trustee.

 

They explained that the scope of the proceedings covers the debtor and guarantors as stipulated in the ruling, resulting in a suspension of claims against the company and its guarantors for up to 180 days from the commencement date of the proceedings, in accordance with the Bankruptcy Law.

 

Last June, JAZADC and ARTEX announced that RESRECO signed a MoU to sell 100% of its shareholders’ stakes to Ethraa Holding, which was binding on the sellers but non-binding on the buyer. The MoU was extended for an additional 70 days until Oct. 30, 2025, Argaam earlier reported.

 

The two companies later extended the MoU on Oct. 30, 2025, until Jan. 31, 2026, at the request of Ethraa Holding to fulfil the requirements of the Saudi Industrial Development Fund and relevant authorities to finalize the transaction.

 

ARTEX and JAZADCO each own 15% of RESRECO’s shares.