Takween extends deal completion deadline with China’s JOFO Nonwoven to June 30

Logo of Takween

Takween Advanced Industries Co. announced that the procedures for executing the share purchase agreement signed with China-based JOFO Nonwoven Co. Ltd. to sell 70% of its subsidiary, Advanced Fabrics (SAAF), is in accordance with the terms of the sale agreement, and is still under approval by the concerned Saudi government entities as of today, May 31, 2021.

The company said in a bourse filing that the two parties agreed to extend the deadline for fulfilling the implementation of the deal, which is in the final stage, to June 30, 2021, instead of May 31, 2021.

Accordingly, the agreement will be extended until the end of June 2021, as the deal is 85% complete.

According to data compiled by Argaam, 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).