AI Summary
Logo of Tabuk Agricultural Development Co. (TADCO)
Tabuk Agricultural Development Co.’s (TADCO) shareholders will vote on reducing capital by 52.94% from SAR 391.77 million to SAR 184.36 million, in a move to amortize accumulated losses, during an extraordinary general meeting (EGM) to be held on Dec. 10.
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Capital Reduction Details |
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Current Capital |
SAR 391.77 mln |
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Number of Shares |
39.18 mln |
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New Capital |
SAR 184.36 mln |
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New Number of Shares |
18.44 mln |
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Reduction (%) |
52.94% |
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Capital Reduction Method |
Writing off 20.74 mln shares at 1 share per every 1.89 shares held |
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Reason |
To restructure the company's capital in a bid to amortize accumulated losses |
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Date of Reduction |
Dec. 10, 2025 (Shareholders registered with the Security Depository Center (Edaa) as of the close of the second trading day after the EGM) |
The company emphasized that the planned capital reduction will have no impact on its financial obligations, operations, financial performance, or regulatory status.
During the EGM, other agenda items include deciding on scrapping the ordinary general assembly’s resolution, dated Sept. 25, 2024, regarding the approval of a previous board recommendation to divest from Masader Agricultural Feed Mill Co. Ltd. by selling TADCO’s entire stake in the latter — which represents 60% of Masader Agricultural.
The board has proposed to sell the stake to partner Ahmed Hussein Al-Omari for SAR 7 million, including the factory owned by Ahmed Hussein Al-Omari Establishment, in which the company also owns 60%.
The divestment was aimed at eliminating the persistant financial strain of annual losses, which averaged SAR 4 million per year. TADCO was also seen to generate SAR 7 million in cash liquidity from the sale, as well as achieving net profits of SAR 9.6 million from the divestment — to be reflected directly in its income statement.
The current board of directors will be authorized to take all necessary actions deemed appropriate in the best interest of the company.
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