Takween announces issuance of industrial investment license for SAAF

Takween Advanced Industries

Takween Advanced Industries Co. (Takween) announced the issuance of an industrial investment license from the Ministry of Investment in favor of its subsidiary, Advanced Fabrics Factory Co. (SAAF). The license was issued on June 21 and received by Takween today, June 23, in the name of the entity owners, JOFO Nonwoven Co. and Takween Co.

The company said in a bourse statement that 95% of the agreement is complete and is expected to be fulfilled on June 30.

Any material developments will be disclosed in due time, it noted, affirming that it will announce the financial impact following the completion of all approval requirements.

According to data compiled by Argaam, Takween received on June 22, a no-objection from the General Authority for Competition (GAC) to complete an economic concentration process with China-based JOFO Nonwoven Co. Ltd. that will acquire 70% of its subsidiary SAAF.

Takween signed a share purchase agreement in December 2020 with JOFO Nonwoven Co. Ltd. to sell 70% of SAAF. Under the agreement, Takween agreed to sell 92,260 shares in SAAF, representing 70% of its share capital, for a price based on a total value of $90 million (SAR 337.5 million) for 100% of SAAF shares, subject to certain adjustments based on net debt and the working capital at completion date.

The net capital gain resulting from the transaction after writing off part of the dues to Takween as stated in the agreement is about SAR 57.6 million (net result in the income statement).