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Al-Jouf Agricultural Development Co. has announced that its board of directors recommended a capital increase by issuing 4.5 million new ordinary shares. This expansion represents 15% of the company's current capital and 13.04% post-increase. Pre-emptive rights for existing shareholders will be suspended, as the new issue will be fully subscribed to by Almunajem Foods Co. at an offer price of SAR 52.5 per share, valuing the total deal at SAR 236.25 million.
This strategic transaction will result in Almunajem Foods holding a 20.3% stake in Al-Jouf Agricultural, combining its existing holding with the newly acquired shares. The capital raised is designated to support Al-Jouf's operational transition toward an integrated agro-industrial business model, enhancing its value chain and long-term production capabilities.
For equity investors and the broader Saudi market, this private placement highlights ongoing consolidation and strategic partnerships within the local food and agriculture sector. Market participants will be monitoring shareholder and regulatory approval processes, as well as the execution of Al-Jouf's strategic transformation plan.
