TADCO inks initial share swap deal with Astra Farms

Tabuk Agricultural Development Co. (TADCO) signed a preliminary agreement with ASTRA Food Co. to take full control of the latter's agriculture division, ASTRA Farms and its related transport services, Tadawul statement said.

The share-swap deal is pending negotiation between the parties, and will expire on Sept. 30, unless a final agreement is reached.

Under the deal, TADCO will issue 15 million shares at SAR 10 per share. The shares will be calculated based on ASTRA’s most recently reported equity and debt position.

The deal does not involve related parties and will require approvals from regulator and shareholders.

This agreement cancels a previous memorandum of understanding (MoU) with ASTRA Food to acquire the agriculture business.