Riyadh – Mubasher: Al Jouf Agricultural Development Company signed a binding subscription agreement with Almunajem Foods Company to increase the company’s capital through a private placement.
Under the terms of the agreement, Almunajem Foods will acquire a minority stake as a strategic investor for a total consideration of SAR 236.25 million.
The capital increase involves raising the company's share capital from SAR 300 million to SAR 345 million. This will be achieved by issuing 4.50 million new ordinary shares, representing 15% of the current capital, at a subscription price of SAR 52.5 per share. The par value of each share is SAR 10.
Almunajem Foods, which is already a substantial shareholder in the company, has committed to subscribing to the entirety of the new issuance.
The transaction remains subject to regulatory approvals from the Capital Market Authority (CMA) and the Saudi Exchange (Tadawul), as well as shareholder approval at an extraordinary general meeting.
Conditions for the deal include an amendment to the company’s bylaws to reduce the number of board members from 7 to 6. Sadeed Financial Company is acting as the financial advisor for Al Jouf Agricultural.
