Riyadh – Mubasher: Tabuk Agricultural Development extended the signed memorandum of understanding (MoU) with Astra Food Company to acquire Astra’s agriculture business.

Both parties agreed on extending the agreement until 30 September 2017, to complete the feasibility study and the due diligence, according to a bourse filing on Thursday.

The two companies signed the MoU in May and stated that it is not binding in any way.

The company stated earlier that the deal is subject to the approval of the Capital Market Authority (CMA), Tabuk’s shareholders, and other relevant parties.

Tabuk noted that neither its shareholders nor board members have any ownership in Astra.

The Saudi-listed firm further mentioned that the full acquisition will be in place of issuing a number of new shares in Tabuk for the owners of Astra each per his ownership rate, after getting the official approvals.

The stock fell 0.98% to SAR 12.25 at Thursday’s close.