Almunajem approves SAR 236.5M Al-Jouf Agricultural subscription deal

Logo of Almunajem Foods Co.

Almunajem Foods Co. received on July 25, notification that Al-Jouf Agricultural Development Co. approved signing a binding subscription agreement for a proposed strategic investment while Almunajem’s board approved signing the agreement today.

The company said the agreement covers Almunajem’s subscription to 4.5 million new shares to be issued by Al-Jouf Agricultural through a capital increase with suspended preemptive rights.

The deal would raise Almunajem’s stake in Al-Jouf Agricultural to 20.29% after the capital increase, including its existing 8.3% holding.

The agreement sets a subscription price of SAR 52.5 per share, for a total of SAR 236.5 million, and provides for the reconstitution of Al-Jouf Agricultural’s board upon completion, subject to regulatory requirements.

Completion of the agreement remains subject to approvals from the Capital Market Authority (CMA), the Saudi Exchange (Tadawul), and Al-Jouf Agricultural’s extraordinary general meeting (EGM).

It added that the announcement will have no immediate financial impact on its results. Any financial impact, if any, will be determined after the required regulatory procedures are completed and the transaction is finalized.

The company said it will disclose any material developments in due course, in line with applicable regulations.

Al-Jouf Agricultural's board approved yesterday signing a binding subscription agreement with Almunajem Foods, according to Argaam’s data, In February, Al-Jouf Agricultural approved non-binding talks on Almunajem Foods' potential strategic investment at a subscription price of SAR 52.5 per share, subject to a capital increase of no more than 15%, the signing of binding agreements including due diligence, and approvals from the EGM and relevant regulatory authorities.