Riyadh – Mubasher: Al Gassim Investment Holding Company (GACO) has signed a memorandum of understanding (MoU) to establish a new company specialised in the manufacturing and marketing of dried dates.

The new company, in which GACO will be the establishing partner with SAR 50 million, will have a total capital of SAR 100 million, the company said in a filing to the Saudi Stock Exchange (Tadawul) on Sunday.

It added that the deal was signed on Thursday, 31 May.

In January, GACO’s board had recommended transforming its wholly-owned subsidiary for the manufacturing dried dates into an independent company specialising in the manufacturing and marketing of dates and other foodstuffs.

GACO last reported a 42.59% rise in profits to SAR 294,000 between January and March, from SAR 206,180 in the year-ago period.

GACO’s stock last close Thursday at SAR 12.06, having risen 0.17% during the session.