Additional announcement from Takween Advanced Industries Co. in regards the developments on the Memorandum of Understanding signed with the Chinese company, JOFO Nonwoven Co. Ltd on 09/06/2020
|Introduction||Takween Advanced Industries Company announces the signing of a share purchase agreement for the sale of 70% of the shares in Advanced Fabrics Factory Company (“SAAF”)|
|Date of Posting the Previous Announcement of Development on Tadawul's Website||2020-06-09 Corresponding to 1441-10-17|
|URL of the Previous Announcement||Click Here|
|Change on the Development||Takween is pleased to announce the signing of a share purchase agreement with JOFO ("Agreement"), under which Takween agreed to sell 92,260 shares in one of its subsidiaries, Advanced Fabrics Factory Company (“SAAF”), representing 70% of the share capital of SAAF (the “Transaction”), for a price based on a total value of US$ 90 Million (337.5 Million Saudi Riyals) for 100% of the shares of SAAF, subject to certain adjustments based on net debt and the working capital at completion date. |
The Board of Directors approved by its decision dated 30/12/2020, to sign the Agreement which is in line with the company's current strategy aimed at focusing and expanding in the plastics sector, whether inside or outside the Kingdom of Saudi Arabia or in the countries in which the company operates as well as the partnership with leading global non-woven industry players to expand its operations
|Financial Impact on the change||Given that the Transaction’s completion date could be on or after 31/03/2021, the indicative financial impact was calculated based on the unaudited financial statements as of 30/11/2020 and the indicative financial impact is as follows: |
1- The book value of the 70% ownership in SAAF as of 30/11/2020 is around 105.8 Million Saudi Riyals, and this value is subject to change at the completion date
2- The net capital gain resulting from the transaction after writing off part of the dues to Takween advanced industries as stated in the Agreement is about 57.6 Million Saudi Riyals (net result in the income statement), and this value is subject to change at the completion date.
3- According to the Agreement, SAAF will reimburse the actual working capital to Takween. According to the indicative financial statements, this value was 101.5 Million Saudi Riyals as of 30/11/2020, and this amount is subject to change at the completion date.
4- The Transaction total cash inflow between the net purchase price amount and the reimbursement of the working capital will be 293 million Saudi Riyals and this value is subject to change at the completion date.
5- The final financial impact will be reflected in the financial statements after Completion of the transaction.
|Additional Information||Completion of the Transaction is subject to several conditions, including obtaining the approval of the relevant governmental authorities, in particular, approval of the General Authority for Competition. |
Either Takween or JOFO has the right to terminate the Agreement if the conditions are not satisfied by 31 May 2021.
At completion of the Transaction, JOFO will own 70% in Advanced Fabrics Factory Company, and will enter into a shareholders’ agreement with Takween.
It is worth noting that there are no related parties in respect of the Transaction.
Takween shall announce any material developments in relation to the Transaction
The Capital Market Authority and the Saudi Stock 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.