TADCO postpones capital cut EGMs on lack of quorum

TADCO seeks shareholders approval to reduce capital by 52.94%

Tabuk Agricultural Development Co. (TADCO) postponed its first and second extraordinary general meetings (EGMs), slated for Nov. 12, due to lack of quorum, according to a statement to Tadawul.

The attendance percentage for the first meeting reached 17.35% and for the second meeting 17.46%.

The required quorum for the first meeting is 50% of the share capital, while the required quorum for the second meeting is 25%.

The company said that it will announce a new date for the meetings after obtaining the necessary regulatory approvals.

The third meeting will proceed with the shareholders in attendance, regardless of the quorum, TADCO added.

According to data available on Argaam, the company’s shareholders were scheduled to discuss reducing the company’s capital by 52.94% from SAR 391.77 million to SAR 184.36 million to offset accumulated losses.

Additionally, shareholders should vote on revoking the OGM decision dated Sept. 25, 2024, about approving the board’s recommendation on exiting the company's 60% stake in Masader Agricultural Feed Mill Ltd.

TADCO will sell its entire stake in Masader to Ahmed Hussein Al-Omari for SAR 7 million, including the factory owned by Ahmed Hussein Al-Omari Foundation, in which TADCO also has a 60% stake.

TADCO shareholders had rejected twice, in 2023, selling the stake in Masader for SAR 8 million, due to the inability to transfer ownership of Ahmed Hussein Al-Omari’s factory to the company. However, they approved in September 2024 the board of directors’ recommendation to exit the investment for SAR 7 million.