JAZADCO and ARTEX stake sale efforts advanced this week as Al Reef Sugar Refining Co. (RESRECO) signed a memorandum of understanding (MoU) to transfer shareholder stakes. The agreement involves all shareholders, including Jazan Development and Investment Co. (JAZADCO) and ARTEX Industrial Investment Co., who plan to sell their full holdings. The buyer, Ethraa Holding, has not yet made a binding commitment.
The MoU, signed on June 21, 2025, outlines the terms of the sale process. Ethraa Holding must now complete financial, legal, operational, and technical due diligence. This 60-day review period will determine whether the transaction moves forward. RESRECO must provide all requested documentation during this time.
JAZADCO and ARTEX each hold 15% of RESRECO’s SAR 300 million capital. That share equals 4.5 million shares per company, priced at SAR 10 each. However, both companies wrote off the entire value of their investments by the end of 2024.
Ethraa Holding must also secure guarantees for RESRECO’s existing debt. These guarantees must especially cover loans from the Saudi Industrial Development Fund (SIDF). If the buyer completes due diligence favorably, shareholders must finalize the deal under agreed terms.
Additionally, the MoU allows for renewal if both parties provide written consent. JAZADCO expects to reverse a SAR 100.8 million loan guarantee if the sale goes through. ARTEX could also see a positive financial impact by reversing SAR 100 million in provisions.
JAZADCO emphasized that the MoU aligns with its strategy to reduce financial exposure from RESRECO operations. Neither company reported involvement with related parties in the transaction. Both firms pledged to provide updates as developments occur.
In conclusion, the JAZADCO and ARTEX stake sale represents a major step toward restructuring RESRECO’s shareholder base. If completed, this sale could significantly improve the financial standing of all parties. As Ethraa Holding conducts its review, the business community awaits further announcements.
