Takween Advanced Industries Co. Announces an update to the developments on the Memorandum of Understanding signed with the Chinese company, JOFO Nonwoven Co. Ltd on 09/06/2020 announcing the full completion of the deal after satisfaction of all the conditions and requirements and obtaining the approval of the concerned governmental and regulatory parties.

Element ListExplanation
Introduction Further to the announcements issued by Takween Advanced Industries on December 30, 2020, and on May 31, 2021, on June 21, 2021, and on June 23,2021 and on June 30,2021, which included the signing of sale purchase agreement ("Agreement") With JOFO for the disposal of 70% of Takween’s shares in SAAF Company with long stop date expires on July 15, 2021, following the extension as agreed by both parties.

These announcements included obtaining all governmental approvals from the General authority of competition in receiving a non-objection letter and the Ministry of Investment, the amendments on the articles of association at the Ministry of Commerce and the increase in the capital of advanced fabrics company from 131.8 million Saudi riyals to 184.8 million Saudi riyals. Accordingly, the number of shares acquired by JOFO which represents 70% of Takween’s shares in SAAF became “129,360” shares instead of “92,260” shares to.

Takween is pleased to announce to its shareholders the full completion of the transaction and the satisfaction of all the transaction’s requirements including notarizing the transfer of shares, the issuance of the commercial register of the company which has been received on the evening of 06/07/2021, reflecting the update in legal structure to a mixed ownership company, to be followed by the transfer of the purchase price as per the terms of the agreement.

Previous Announcement the developments on the Memorandum of Understanding signed with the Chinese company, JOFO Nonwoven Co. Ltd on 09/06/2020
Date of Previous Announcement on Tadawul's Website 2021-06-30 Corresponding to 1442-11-20
Percentage of fulfilled achievement 100%
Event's Expected Completion Date 07-07-2021
Reasons for Exceeding the Announced End Date Fulfilling the requirements set in the “ agreement”
The costs associated with the event, and if they have changed or not with indication of the reasons. No Changes
Impact of the Delay on the Company's Financial Results No Impact
Additional Information As announced previously that the transaction price is based on a total value of US$ 90 Million (337.5( Million Saudi Riyals) for 100% of the shares of SAAF, the financial impact has been calculated based on SAAF management accounts as of 31/05/2021 being the financial reference date.

Given that the Transaction’s completion occurred in July 2021, the financial impact will be reflected on Takween FS as of 31/07/2021 as follows:

1- The Transaction total cash inflow will be (304.7) million Saudi Riyals between the net purchase price amount of (197.64) million Saudi Riyals and the reimbursement of the working capital of (107.06) million Saudi Riyals.

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 (62.9) Million Saudi Riyals (net result in the income statement).

3- The final financial impact will be reflected in Takween financial statements as of 31/07/2021.

4- The transaction cash proceeds will be used in several manners such as early payment of some loans, which will result in lowering the financing cost, and the funding of capex projects as per the budget approved by the board.

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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