TADCO to offload Masader entire ownership for SAR 7M

Logo of Tabuk Agricultural Development Co. (TADCO)

Tabuk Agricultural Development Co.’s (TADCO) shareholders approved the board’s recommendation to sell the company’s entire ownership in Masader Agricultural Feed Mill Ltd., during the ordinary general meeting (OGM) held on Sept. 25, according to a statement to Tadawul.

TADCO will sell its entire 60% stake in Masader to Ahmed Hussein Al-Omari for SAR 7 million, including the factory owned by Ahmed Hussein Al-Omari Foundation, in which TADCO also has a 60% stake.

For More Mergers and Acquisitions

The deal will help TADCO stop the ongoing losses, which reached SAR 4 million per annum. TADCO will also generate SAR 7 million in cash and realize net gains of SAR 9.6 million from the divestiture, which will be reported in the profit or loss statement.

Last year, the company’s shareholders had rejected twice selling its ownership in Masader for SAR 8 million as it was difficult to transfer the ownership of the factory owned by Ahmed Hussein Al-Omari Foundation, data compiled with Argaam showed.