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Logo of Saudi Paper Manufacturing Co. (SPM)
Saudi Paper Manufacturing Co. (SPM) received a letter from its lawyer in the Kingdom of Morocco stating that a preliminary judicial ruling was issued in its favor at the Commercial Court in Marrakech.
The ruling provides for the termination of the customary sale contract signed with the buyer and one of SPM subsidiaries, Saudi Company for Investment and Industrial Development.
The ruling included returning the plant to the company and charging the defendants the expenses, the Saudi-listed firm said in a bourse filing.
The impact will be positive on the company's financial statements once the process for receiving the subsidiary company and its plant is completed, the statement added.
SPM also confirmed that it will not hesitate to preserve its interests and the rights of its shareholders, and that it will announce any subsequent updates on this matter.
In January 2019, SPM signed a pledge to sell Moroccan Paper Converting Co., wholly-owned by Saudi Company for Investment and Industrial Development, according to data compiled by Argaam.
Later, the company clarified that the Moroccan plant has been put under precautionary seizure, adding an appeal to annul and suspend the sale procedures was also filed since the agreed amount to finalize the deal was not paid.
In September 2020, the Saudi-listed firm announced that the process to recover its Moroccan subsidiary and its plants are still under official procedures of termination.
Related News
SPM says process of recovering Moroccan subsidiary, plants still under termination procedure |
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