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Almunajem Foods to Buy 20% Stake in Al-Jouf Agricultural for SAR 236.5M
Almunajem Foods will subscribe to 4.5 million new shares at SAR 52.5 each, lifting its stake in Al-Jouf Agricultural to 20.29%. The deal still needs CMA, Tadawul, and EGM approval.
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Almunajem Foods Co. is set to become a major shareholder in Al-Jouf Agricultural Development Co. after its board approved a binding subscription agreement on July 25, the same day Al-Jouf's board signed off on the deal.
The agreement calls for Almunajem to subscribe to 4.5 million new shares that Al-Jouf Agricultural will issue through a capital increase with suspended preemptive rights. The price is SAR 52.5 per share, for a total consideration of SAR 236.5 million.
Almunajem already holds 8.3% of Al-Jouf Agricultural. The transaction would lift its stake to 20.29% after the capital increase. Crossing the 20% threshold typically brings closer regulatory oversight and board representation rights under Saudi corporate law.
The agreement provides for the reconstitution of Al-Jouf Agricultural's board after the transaction closes, subject to regulatory requirements. Almunajem said the announcement will have no immediate financial impact on its results. Any financial impact will be determined after the required regulatory procedures are completed and the deal is finalized.