Almunajem gets approval to study strategic investment in JADCO

Almunajem received approval from JADCO to begin preliminary, non-binding discussions on a potential strategic investment

Almunajem Foods Co. said it received on Feb. 1 approval from Al-Jouf Agricultural Development Co. (JADCO) to begin preliminary, non-binding discussions on a potential strategic investment, according to a statement to Tadawul.

Almunajem said it will take the necessary steps to move forward with studying the potential investment, the statement added.

JADCO received a letter of intent from Almunajem on Jan. 19 to hold initial, non-binding talks on a possible acquisition. Both Saudi-listed companies said any transaction would be carried out via a capital increase with the suspension of pre-emptive rights for existing shareholders, in line with Article 129 of the Companies Law.

JADCO’s board later approved exploring Almunajem’s entry as a strategic investor through the acquisition of a minority stake at a subscription price of SAR 52.5 per share, provided the capital increase does not exceed 15% of total share capital.

The process is subject to signing binding agreements, completion of due diligence, approval by the extraordinary general assembly, and all required regulatory approvals, Argaam data showed.