TADCO shareholders to vote on stake sale in Masader for SAR 8M on Dec. 27

Logo of Tabuk Agricultural Development Co. (TADCO)

Tabuk Agricultural Development Co.’s (TADCO) shareholders will vote on selling its entire entire 60% stake in Masader Agricultural Feed Mill Ltd. Co. to partner Ahmed Hussein Al-Omari, including the affiliated factory of Ahmed Hussein Al-Omari Foundation, in which TADCO also has a 60% stake, for SAR 8 million, during the ordinary general meeting (OGM) scheduled for Dec. 27.

In a Tadawul statement today, Dec. 3, the company said the stake sale, necessitated by challenges in transferring Ahmed Hussein Al-Omari's factory ownership, is expected to have a positive impact.

The sale will result in erasing TADCO’s SAR 4 million annual losses from Masader Agricultural. This will in turn yield up to SAR 8 million in profit to be recorded in the income statement, reduce losses by 2% of capital, enhance cash flow and liquidity by SAR 8 million, and addressing concerns raised in the external auditor's report.

In its previous October meeting, TADCO's OGM rejected the board’s recommendation to sell its entire 60% stake in Masader Agricultural to Ahmed Hussein Al-Omari for SAR 8 million, covering the factory also partly owned by the company, according to data compiled by Argaam.