BRI: Saudi Arabia's Takween sells 70% of subsidiary SAAF to China's JOFO Nonwoven

Total transaction cash inflow will be $81 million

  
Image used for illustrative purpose. A labourer works at a textile mill in Huaibei, Anhui province February 1, 2013. China's giant manufacturing sector extended its mild recovery in January with weak foreign demand still crimping growth, a pair of surveys showed, underscoring that the country's rebound from its worst downturn in 13 years remains modest. REUTERS/china

Image used for illustrative purpose. A labourer works at a textile mill in Huaibei, Anhui province February 1, 2013. China's giant manufacturing sector extended its mild recovery in January with weak foreign demand still crimping growth, a pair of surveys showed, underscoring that the country's rebound from its worst downturn in 13 years remains modest. REUTERS/china

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(Details about financial advisor added in the 5th Para)
 
Saudi Arabia's Takween Advanced Industries announced on Wednesday that it has completed the sale of majority stake in its subsidiary Advanced Fabrics Factory Company (SAAF) to Chinese firm JOFO Nonwoven Co.
 
SAAF is a manufacturer of recycled polypropylene granules and nonwoven fabric.
 
Takween said in a stock exchange statement that 'the transaction price is based on a total value of 337.5 million Saudi riyals - $90 million - for 100 percent of the shares of SAAF.'
 
It said the total transaction cash inflow will be 304.7 million riyals ($81 million) comprising net purchase price amount of 197.64 million riyals and reimbursement of working capital of 107.06 million riyals.
 
Dubai Financial Services Authority-regulated Himmah Capital acted as financial advisor to Takween on the transaction. 
 
Tadawul-listed Takween had signed a non-binding memorandum of understanding (MoU) to sell 70 percent of SAAF to JOFO Nonwoven last year.
 
Last month, Takween said in a Tadawul statement that it had capitalised part of SAAF's dues owed to it, amounting to 53 million riyals, thereby increasing SAAF's capital from 131.8 million riyals to 184.8 million riyals, and increasing JOFO's share acquisition volume to 129,360 instead of 92,260 shares under the MoU.
 
Takween Advanced Industries manufactures and sells plastic packaging products and non-woven fabrics with factories in Saudi Arabia and Egypt, according to company's profile on the exchange's website.
 
(Writing by SA Kader; Editing by Anoop Menon)
 
(anoop.menon@refinitiv.com)
 
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