Saudi Paper subsidiary sells land plot in Riyadh for SAR 24.8 mln, makes capital gain of SAR 19 mln

Logo of Saudi Paper Manufacturing Co. (SPM)

Saudi Paper Manufacturing Co. (SPM) announced that its subsidiary, Saudi Investment Recycling Co. (SIRC), sold a land plot in Riyadh, Al Sulay District, to Aldrees Petroleum and Transport Services Co. for SAR 24.76 million, excluding real estate transaction tax, according to a bourse statement.

The deal does not have any brokerage fees or related parties, the company said, adding that the sale value was fully paid with a certified check.

The sale is part of the company's strategy to secure the necessary financing for expansion projects and disposal of non-performing assets.

The deal proceeds will be used to finance the company’s expansion activities.

The sale will help improve liquidity to support the company's expansions, stop depreciation calculation for property, plant, and equipment found on the land, as well as achieve a capital gain of nearly SAR 19 million.

The asset book value reaches SAR 5.8 million, the statement said.