TADCO accumulated losses decline by SAR 19.3 mln on Horizon Food’s 10% share sale

Logo of Tabuk Agriculture Development Co. 

Tabuk Agriculture Development Co. (TADCO) announced selling 10%, or 800,000 shares, of Saudi livestock meat firm Horizon Food Co., an affiliate, for SAR 29.6 million, by offering shares in Nomu-Parallel Market, according to a statement to Tadawul.

The book value of these shares, as of Sept. 30, 2022, and as per Horizon Food’s unaudited financial statements, reached SAR 9.1 million, which resulted in cash flows of SAR 29.6 million.

The spread between cash flows and the book value led to an exceptional decline in accumulated losses by SAR 19.3 million, excluding the offering costs.

TADCO still owns a 40% stake, or 3.2 million shares, in Horizon Food.

The relevant financial impact will likely appear on TADCO’s consolidated statement of financial position and the statement of changes in equity as of March 31, 2023.

Horizon Food, an affiliate of TADCO, offered nearly 1.6 million shares, or 20% of share capital, at SAR 37 a share, data compiled by Argaam showed.