Takween announces capitalization of SAR 53 mln in debt within China’s JOFO deal

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Takween Advanced Industries Co. announced that a share purchase agreement with China-based JOFO Nonwoven Co. Ltd. to sell 70% of its subsidiary, Advanced Fabrics (SAAF), is proceeding as per the agreed-on terms, according to a bourse filing.

Takween completed on June 29, the capitalization of SAR 53 million in debt, as per preliminary financial statements on May 31, 2021. Accordingly, SAAF capital will increase to SAR 184.8 million from SAR 131.8 million, following which the stakes to be sold will reach 129,360 instead of 92,260.

The company is currently seeking to obtain the approval of the Ministry of Commerce on the equity transfer.

Both parties agreed to extend the deal completion date to July 15, instead of June 30, 2021. Accordingly the date extension agreement was signed on June 29.

The companies attributed the delay to the fulfilment of the agreed-on terms as the share purchase deal is 95% completed.

In December 2020, Takween signed a share purchase agreement with China-based JOFO to sell 70% of its subsidiary 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.

In June 2020, Takween signed a non-binding memorandum of understanding (MoU) with JOFO to sell 70% of its subsidiary, SAAF, according to data compiled by Argaam.

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