Almunajem plans to become strategic investor in Al-Jouf Agricultural

In two separate statements to Tadawul, both Saudi-listed companies said the potential transaction would be executed via a capital increase with the suspension of preemptive rights for existing shareholders, in accordance with the provisions of Article (129) of the Companies Law.

Almunajem has proposed a subscription price of SAR 52.50 per newly-issued share.

This move aligns with Almunajem’s efforts to enhance vertical integration across the food value chain, support food security, diversify growth sources, and create added value for its shareholders. This should also achieve sustainable growth and strengthen its position within the food sector.

Both parties emphasized that this matter is still at a preliminary stage. Any potential transaction remains subject to the completion of due diligence, internal approvals, and necessary regulatory clearances from official authorities and the companies’ general assemblies.

Meanwhile, Al-Jouf Agricultural confirmed that Almunajem’s letter of intent does not constitute a binding offer and does not entail any legal obligation at this time.

Both companies noted that they will announce duly any material developments in this regard.