Riyadh – Mubasher: Saudi Arabia-based Tabuk Agriculture Development Company (TADCO) signed a memorandum of understanding (MoU) with Al-Khalijia Investment for Foods to acquire its food business.

TADCO plans to transfer the business to a new undergoing firm in case of completing acquisition, according to a statement on Sunday to the Saudi Stock Exchange (Tadawul).

The contract will last until 31 March, unless it is cancelled by any party or the final transaction is implemented.

Based on the contract, TADCO will invest maximum value of SAR 30 million and owns 49% stake in the new company.

The firm will start legal, financial, and operational due diligence and the two companies will appoint financial advisers.

The transaction will be completed after obtaining regulatory approvals.

By 11:20 am KSA time, TADCO's stock increased 0.86% to SAR 12.84.