Tabuk Agricultural inks MoU to buy ASTRA Food unit

Tabuk Agricultural Development Co. signed on Sunday a memorandum of understanding (MoU) with Saudi-based ASTRA Food Co. to acquire its agricultural division, ASTRA Farms, and the related transport services under a share swap deal.

Under the agreement’s terms, the owners of ASTRA Farms will be issued new shares of Tabuk, the Saudi-listed agricultural firm said in a statement to Tadawul.

The total number of new shares and the deal’s value was not disclosed.

The MoU will expire on December 31, but can be extended with mutual agreement.

Financial and legal advisers will be appointed by Tabuk to conduct the required due diligence.

The capital increase required for the acquisition is subject to the approval of the competent authorities and Tabuk’s shareholders, the statement added.