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Alujain Corp. Announces Sale of its entire stake amounting to 98.75% in the capital of the subsidiary, Zain Industries in the value of 15.2 million Saudi Riyals
| Element List | Explanation |
|---|---|
| Transaction Details | Signing an agreement to sell the entire share of Alujain Corp. amounting to 98.75% of the shares of Zain Industries (Zain) |
| Transaction Value | 15.2 million Saudi Riyals |
| Transaction Terms | The completion of the transaction is subject to a number of preconditions: 1. 1. The price of 15.2 million Saudi Riyals for the fixed assets, goodwill of the company. 2. The net assets (current assets less current liabilities) will be determined, verified and paid within 120 days after the sale, based on company’s financial statements which will be prepared within 90 days. 3. Obtaining the required regulatory approvals. |
| Parties of the Transaction | - Alujain Corp. as a seller - Falaj Holding Company as a buyer |
| Transaction Funding Method | N/A |
| Transaction Execution Date | 2023-07-10 Corresponding to 1444-12-22 |
| Description of the Business of the Asset forming the Subject Matter of the Transaction | Zain is a closed joint stock company incorporated in Kingdom of Saudi Arabia with its head office and plant in Jubail Industrial City, with a paid-up capital of SR22.5 million, comprised of 2,250,000 shares of SR10 per share, Alujain holds 98.75% ownership in Zain as the end of current year. Its main objective is to produce homecare products (spray starch, air-fresheners, anti-static spray, bleach, fabric softener, oven cleaner, furniture polish, stainless steel polish etc.), insecticides and agricultural pesticides, herbicides, fungicides etc. of all kinds and forms, beside general health products |
| Asset Book Value | The book value as of 31-3-2023 amounts to 19,243,178 Saudi Riyals |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | Zain Revenues: In 2020, an amount of SR 14.38 million In 2021 an amount of SR 23.90 million In 2022, an amount of SR 21.90 million Zain Net Losses: In 2020, net loss of SR 4.18 million In 2021, net loss of SR 2.38 million In 2022, net loss of SR 7.02 million |
| Transaction reasons | The nature and volume of the company's business in the detergent/FMCG sector is not commensurate with Alujain’s main business in the petrochemical sector |
| Expected Impact of the Transaction on the Company and Its Operations | The financial impact of this transaction will be reflected in the 2nd half of 2023 |
| Details of Using The Proceeds of the Asset Sale | The proceeds will be used for general corporate purposes |
| Related Parties | There are no related parties to the transaction |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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