Jazan Development Company (Jazadco) said that its board approved on Saturday its decision to buy 4.5 million shares for a total of SAR 45 million from Al-Reef for Sugar Refining Company.
Jazadco’s investment will represent 15 percent of the company’s capital, it said in its statement to Tadawul, Saudi Arabia’s bourse.
Jazadco explained that it will pay SAR 9 million from its own resources as a first installment for its stake.
The rest of the amount will be paid as soon as the Saudi Industrial Development Fund issues its approval to finance the sugar project in Jazan, the company said.
Jazadco projected that the financial impact of the new investment will materialize towards the end of 2017 and beginning of 2018.
Al-Reef for Sugar Refining Company is a closed joint stock company in Saudi Arabia under establishment with a capital of SAR 300 million divided into 30 million shares with a nominal value of SAR 10 riyals per share.
According to Argaam, Al-Abdullatif Industrial Investment Company had also decided last month to contribute to the establishment of the sugar refining company by investing SAR 45 million to own 15 percent of its shares.
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