NADEC, Leha sign agreement to establish SAR 5 mln potato seeds JV

Logo of National Agricultural Development Co.

National Agricultural Development Co. (NADEC) signed, on Jan. 30, a shareholders’ agreement with Leha Agriculture Co. to establish a limited liability company that will produce potato seeds and multiplicate its production in the Kingdom.

The new company is expected to be up and running by next June 30.

In a statement to Tadawul, NADEC said the new JV, which will be 51% owned by the latter, will operate with SAR 5 million capital. The agreement includes terms and conditions that regulate the process of incorporation.

NADEC and Leha agreed on the possible entry of a potential technical foreign shareholder in the company, whose stake shall be acquired and transferred exclusively from shares held by Leha in the firm. The move would come in accordance with an agreement that will be concluded at the time.

The financial impact and any material developments will be announced in due time, NADEC noted.

In September 2022, the company signed a non-binding memorandum of understanding (MoU) with Leha to produce potato seeds (mini tuber seeds) in Saudi Arabia, Argaam earlier reported.