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Saudi Vitrified Clay Pipes Co. Announces the Selling of the Company’s second plant which produces vitrified clay pipes and related fittings in the amount of SAR 45,000,000 (exclusive of any fees or taxes).
| Element List | Explanation |
|---|---|
| Introduction | The Saudi Vitrified Clay Pipe Company announces to its shareholders that it has signed an agreement to sell the assets of its second plant, located in the Second Industrial City in Riyadh, along with the assignment of the land lease on which the plant is established, for a total sale value of SAR 45,000,000. This transaction is aligned with the Company’s strategic plans to enhance asset and resource utilization efficiency and to support future growth. |
| Transaction Details | The transaction entails the sale of the Company’s second plant, located in the Second Industrial City in Riyadh, which produces vitrified clay pipes and related fittings, together with the assignment of the associated land lease to the buyer. |
| Transaction Amount | SAR 45,000,000 (exclusive of any fees or taxes). |
| Transaction Conditions | Both parties agreed that the total consideration for the assets and facilities subject to the agreement amounts to SAR 45,000,000, exclusive of any fees or taxes, to be settled as follows: - First installment: SAR 9,000,000 upon signing the agreement. - Second installment: SAR 36,000,000 upon obtaining approval from the Saudi Authority for Industrial Cities and Technology Zones (MODON) for the lease assignment and upon completion of the assignment procedures in favor of the buyer in accordance with applicable regulations. The land and assets will be delivered to the buyer following receipt of the second installment. Completion of the transaction remains subject to MODON’s approval of the lease assignment. |
| Parties of the Transaction | Al-Mutahida Al-Namothajiya Industries Company Saudi Vitrified Clay Pipe Company |
| Transaction Financing Method | Not applicable. |
| Date of Entering Into The Transaction | 2025-09-19 Corresponding to 1447-03-27 |
| Description of Activity of The Asset Subject of The Transaction | Production of vitrified clay pipes and accessories. |
| Asset Book Value | SAR 24.9 million, according to the reviewed financial statements as of 30 June 2025. |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | No separate financial statements are available for the asset. |
| Transaction reasons | Due to the decline in demand for vitrified clay pipes and the limited economic feasibility of retaining the second plant, while achieving higher economic feasibility through selling the second factory and keep producing clay pipes and accessories from the company's first factory. The proceeds from the sale will be utilized to fund operating activities, in the best interests of the Company and its shareholders. |
| Expected Impact of the Transaction on the Company and Its Operations | The transaction is expected to generate a capital gain of SAR 20.1 million. |
| Details of Using The Proceeds of the Asset Sale | To fund the Company’s operating activities. |
| Related Parties | None |
| Additional Information | None |
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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