Takween signs non-binding MoU to sell 70% of a subsidiary to Chinese JOFO Nonwoven

Takween Advanced Industries Co. signed a non-binding memorandum of understanding (MoU) with China-based JOFO Nonwoven Co. Ltd. to sell 70% of its subsidiary, Advanced Fabrics (SAAF).

The two parties agreed that the fair market value of SAAF is SAR 307.5 million, the Saudi-listed firm said in a bourse statement, adding that JOFO will work exclusively with the company regarding the prospective acquisition starting from the due diligence test date and for 365 days that could be extended upon the agreement of both parties.

Final agreement negotiations will commence upon completing all aspects of the due diligence test by the buyer, Takween also said indicating that no related parties are involved in the deal.

The financial impact of the transaction will be determined later upon reaching a final agreement with the buyer and will be reflected on the period in which the final agreement will be signed, the firm added.

Updates regarding this deal will be disclosed in a timely manner, the statement included.

Any binding agreement to complete the transaction will be subject to the Takween and SAAF boards’ approvals in addition to any required regulatory approvals, the firm added.