JAZADCO signs MoU to set up aquaculture firm through merger

Jazan Energy and Development Company (JAZADCO) signed a memorandum of understanding (MoU) with Tabuk Fisheries Co. (TFC), Tharawat Seas, and Aquaculture Sharq Farms Company to conduct a feasibility study of the 3 companies’ merger with JAZADCO’s aquaculture sector.

The 6-month MoU states that the potential merger entails establishing a new limited liability company (LLC) headquartered in Riyadh with a capital of SAR 500,000, JAZADCO said in a statement to Tadawul on Wednesday.

JAZADCO stake stands at 45%, while the share of the 3 other companies will be defined in due course based on the tangible assets they will provide, according to the statement.

The new entity is fully supported by the Ministry of Environment, Water and Agriculture as part of the national strategy to develop the aquaculture sector and promote its contribution to the national economy in line with Saudi Vision 2030’s objective related to food security, Gross Domestic Product (GDP) growth and global competition.