Logos of Taiba Investments Co., Knowledge Economic City Co. and Savola Group
Taiba Investments Co. completed the purchase of Savola Group’s direct and indirect ownership in Knowledge Economic City Co. (KEC) and Knowledge Economic City Developers Co. Ltd, according to two separate statements to Tadawul.
Savola received the full value of the transaction; thus Taiba will increase its ownership in KEC from 3.2% to 9.6%, and boost equity in Knowledge Economic City Developers Co. from 14.35% to 35.06%.
The financial impact of the transaction will be reflected as an increase in the company’s investments in the consolidated balance sheet. It will positively impact the statement of income as expected revenue from the deal.
Savola indicated that the deal would generate cash proceeds at SAR 459 million and SAR 39 million in gains, which will reflect on Q4 2022 total comprehensive income, in addition to a capital gain of SAR 42 million in Q4 2022 profit/loss statement.
In August, Taiba inked a binding agreement to acquire Savola’s entire ownership in KEC for SAR 459.26 million, Argaam reported.
Taiba’s shareholders recently approved the buyout of Savola’s entire ownership in KEC.
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