Takween buys Chinese partner’s 70% stake in associate SAAF

Logo of Takween Advanced Industries Co.

Takween Advanced Industries Co. signed today, April 30, a share purchase agreement (SPA) with Chinese partner JOFO Nonwovens Co. to acquire its entire 70% stake in associate Advanced Fabrics Factory Co. (SAAF) (a limited liability company).

In a statement to Tadawul, the company explained that the acquired stake represents 129,360 shares. Takween currently holds a 30% stake in SAAF, representing 55,440 shares.

Post-acqusition, Takween will own 100% of SAAF’s share capital. This is in consideration for the seller’s transfer of its entire stake, with Takween assuming all current and future obligations of the target company, including financial and operational liabilities, as well as any other existing or contingent obligations, in accordance with the terms and conditions set out in the SPA.

As for the expected financial impact, and in accordance with IFRS 3 requirements, the potential financial impact of the takeover transaction is an estimated gain of SAR 3.95 million. This is considered a preliminary estimate of the net proceeds and remains subject to final review by the external auditor, posied to change based on the final assessment of the fair value of the net assets and liabilities at the completion date.

The financial impact of the transaction is expected to be reflected in Takween’s consolidated financial statements for Q1 2026, subject to completion of the transaction within the aforementioned period.

According to the statement, the transaction is subject to a number of preconditions, including obtaining the relevant regulatory approvals.

Takween also said it will announce any material developments related to the transaction in due course.

Takween’s board of directors approved, in December 2025, the signing of a memorandum of understanding (MoU) with Chinese partner JOFO to acquire the latter’s entire 70% stake in SAAF, represented by 129,360 quotas. The board further authorized the Chairman to complete the required regulatory procedures and to execute the final agreements.