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.
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