Alujain inks deal to sell entire stake in Zain Industries for SAR 15.2 mln

Logo of Alujain Corp. 

Alujain Corp. signed an agreement today, July 10, to sell its entire 98.75% stake in its subsidiary Zain Industries Co. to Falaj Holding Co., for SAR 15.2 million, according to a Tadawul statement. 

The company said that the subsidiary's book value as of March 31, 2023, is SAR 19.24 million. 

It added that completion of the transaction is subject to a number of preconditions: 

- The SAR 15.2 million will be paid as the price of fixed assets and goodwill of the company. 

- The net assets (current assets minus current liabilities) will be determined, verified and paid within 120 days from the sale, based on company’s financial statements which will be prepared within 90 days. 

- The required regulatory approvals will be obtained. 

Zain Industries is a closed joint stock company, incorporated in Saudi Arabia with its head office and plant in Jubail Industrial City, with a paid-up capital of SAR 22.5 million, comprised of 2.25 million shares at SAR 10 each. Alujain holds 98.75% of Zain Industries. 

Zain Industries’ main objective is to produce homecare products (spray starch, air-fresheners, anti-static spray, bleach, fabric softener, oven cleaner, furniture polish, stainless steel polish etc.), insecticides and agricultural pesticides, herbicides, fungicides of all kinds and forms, besides general health products.

Alujain also indicated that the nature and volume of the company's business in the detergent/FMCG sector is not commensurate with Alujain’s main business in the petrochemical sector.

It noted that the related financial impact will be reflected in the second half of 2023, highlighting that the proceeds will be used for general corporate purposes, with no related parties.