Takween says terms for China’s JOFO 70% acquisition of subsidiary completed

Logo of Takween

Takween Advanced Industries Co. (Takween) announced finalizing the terms related to China-based JOFO Nonwoven Co. Ltd.’s acquisition of 70% of its subsidiary, Advanced Fabrics (SAAF), according to a bourse filing.

The terms include the registration of ownership transfer, issuing the commercial register after the company was converted into a mixed ownership corporation, and the payment of the deal value.

The relevant financial impact was calculated as per SAAF preliminary financial results as of May 31.

As the deal terms were completed in July 2021, the relevant financial impact will be recorded in Takween’s financial statements as on July 31, as follows:

- The deal net cash flows totaled SAR 304.7 million, including a payment of SAR 197.64 million and SAR 107.06 million in reimbursement of the working capital.

- The deal net capital gains, excluding written-off debts due to Takween, reached SAR 62.9 million as net result in the statement of income.

The final financial impact will appear on Takween’s financial statements as of July 31.

The transaction cash proceeds will be utilized in early payment of some loans, which will reduce the cost of finance and funding expansions, in line with the budget estimate approved by the board of directors.

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

For More M&As