Amira Al-Waslati

Saudi Arabia’s Al-Munajem Food Company, listed on the Saudi Stock Exchange, intends to acquire a stake in Saudi Arabia’s Al-Jouf Agricultural Development Company, which is also listed, according to two statements issued by the two companies for trading this week.

Details of the potential deal

(According to disclosures from both companies)

The mine aims to enter as a strategic investor in Al-Jouf Company, by increasing Al-Jouf’s capital, while suspending the right of pre-emption for current shareholders.

The company did not specify the total value of the potential deal or its sources of funding, but said the subscription price would be 52.5 riyals (approximately $14) per new share in Al-Jouf. Al-Jouf shares closed at 48.1 riyals on Tuesday.

The potential deal is still in its early stages and subject to necessary approvals. Al-Jouf said it had received a letter from the mine regarding the proposal, but that this "does not constitute a binding offer and does not create any legal obligation at this time."

About the two companies

(According to official data)

-Al-Manjam : Established in 2007, its activity dates back more than 75 years. It operates in the trade and manufacture of frozen foods in Saudi Arabia and provides transportation and storage services.

According to the latest available data, the mine's net profit declined by about 53% during the first nine months of 2025 on an annual basis, to 102.7 million riyals, due to a decline in revenues, and an increase in operating expenses and financing costs.

- Al-Jawf : Established in 1988 and operates in agricultural and animal production and manufacturing.

According to the latest available data, the company’s revenues during the first nine months of 2025 increased by approximately 19.72% year-on-year, reaching 503.6 million riyals, which supported the growth of net profit for the same period by approximately 8.8% year-on-year, to approximately 73 million riyals.

(Prepared by: Amira Al-Waslati, Edited by: Shaimaa Hefzy, Reviewed before publication by: Yasmin Saleh, Contact: zawya.arabic@lseg.com)

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