Saudi Ceramic extends preliminary agreement with Turkish company

Saudi Ceramic extends preliminary agreement with Turkish company

Riyadh – Mubasher: Saudi Ceramic Company has extended the term of a preliminary non-binding agreement with Eczac?ba?? Yap? Gereçleri A.? (EYAP), a subsidiary of the Turkish Eczac?ba?? Group, until the end of 2024.

Throughout the year, the two companies are set to complete the due diligence work, conduct the necessary assessments, and final negotiations; sign the relevant agreements; and apply for necessary approvals from competent authorities, according to a bourse filing.

The non-binding agreement is built upon a letter of intent (LoI) between Saudi Ceramic and EYAP, signed in April 2023.

The LoI aimed to study the establishment of a company, equally owned by both parties, specialising in the manufacture and sale of sanitary ware and its accessories in Saudi Arabia.

It was agreed that all factories and assets of the sanitaryware segment of Saudi Ceramics Company would be transferred to the new company in the event of an agreement.

Saudi Ceramic turned to losses during the first nine months (9M) of 2023, recording a net loss Zakat and tax of SAR 120.55 million, versus net profits of SAR 132.03 million in 9M-22.

Saudi Ceramic extends preliminary agreement with Turkish company