Saudi Arabia’s National Agricultural Development Co. (NADEC) has signed a non-binding memorandum of understanding (MoU) with Dava Agricultural Co. to begin discussions on a potential acquisition.
In a disclosure to the Saudi stock exchange, Tadawul, on Monday, NADEC said the MoU was also with the sole shareholder in Dava, Battal Saeed Battal Al Dosary. NADEC is looking to potentially acquire either the entire share capital of Dava or certain assets that have an area up to 70 hectares.
Dava’s business includes advanced hydroponic and climate-controlled greenhouses on multiple sites in the kingdom for growing vegetables and fruits.
NADEC will determine whether it will acquire Dava’s entire share capital or certain assets following the completion of the financial, commercial, legal, and tax due diligence, finalizing the definitive documentation, and obtaining any third-party approvals, including any regulatory ones, it said.
The MOU shall be effective from the date of signing for a period of six months.
NADEC is 20 percent owned by Saudi’s Public Investment Fund, with the rest publicly traded on the Saudi bourse.
(Writing by Brinda Darasha; editing by Daniel Luiz)
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