Almunajem received approval from JADCO to begin preliminary, non-binding discussions on a potential strategic investment
Almunajem Foods Co. said it received on Feb. 1 approval from Al-Jouf Agricultural Development Co. (JADCO) to begin preliminary, non-binding discussions on a potential strategic investment, according to a statement to Tadawul. 
Almunajem said it will take the necessary steps to move forward with studying the potential investment, the statement added.
JADCO received a letter of intent from Almunajem on Jan. 19 to hold initial, non-binding talks on a possible acquisition. Both Saudi-listed companies said any transaction would be carried out via a capital increase with the suspension of pre-emptive rights for existing shareholders, in line with Article 129 of the Companies Law.
JADCO’s board later approved exploring Almunajem’s entry as a strategic investor through the acquisition of a minority stake at a subscription price of SAR 52.5 per share, provided the capital increase does not exceed 15% of total share capital.
The process is subject to signing binding agreements, completion of due diligence, approval by the extraordinary general assembly, and all required regulatory approvals, Argaam data showed.
Almunajem received approval from JADCO to begin preliminary, non-binding discussions on a potential strategic investment
Almunajem Foods Co. said it received on Feb. 1 approval from Al-Jouf Agricultural Development Co. (JADCO) to begin preliminary, non-binding discussions on a potential strategic investment, according to a statement to Tadawul.
Almunajem said it will take the necessary steps to move forward with studying the potential investment, the statement added.
JADCO received a letter of intent from Almunajem on Jan. 19 to hold initial, non-binding talks on a possible acquisition. Both Saudi-listed companies said any transaction would be carried out via a capital increase with the suspension of pre-emptive rights for existing shareholders, in line with Article 129 of the Companies Law.
JADCO’s board later approved exploring Almunajem’s entry as a strategic investor through the acquisition of a minority stake at a subscription price of SAR 52.5 per share, provided the capital increase does not exceed 15% of total share capital.
The process is subject to signing binding agreements, completion of due diligence, approval by the extraordinary general assembly, and all required regulatory approvals, Argaam data showed.
