Takween subsidiary sale to facilitate US, China expansion “” chairman

Takween subsidiary sale to facilitate US, China expansion “” chairman

RIYADH: The completion of Takween Advanced Industries' sale of its subsidiary SAAF to China's Jofo Nonwoven will allow it to expand into new markets, including the US and China, said Chairman Abdulmohsen Al-Othman. Takween said today it had completed the sale of 70 percent of SAAF to Jofo, a deal it first announced in 2020. The total transaction cash inflow will be 304.7 million riyals ($81 million), made up of a net purchase price of 197.64 million riyals and reimbursement of working capital of 107.06 million riyals, Takween said in a statement to the Saudi stock exchange. The terms included SAAF share capital increase from SR132 million ($35.1 million) to SR185 million ($49.3 million). This is not an exit as much as it is a union to expand into different markets, Al-Othman told Al Arabiya. Takween is in a good financial position, after restructuring its debt, and that the SAAF deal contributed to the early repayment of the company's loans of about SR1 billion, he said. SAAF manufactures recycled polypropylene granules and nonwoven fabric. Takween manufactures and sells plastic packaging products and non-woven fabrics with factories in Saudi Arabia and Egypt.