SVCP says MODON approves lease transfer of second plant to buyer

Logo of Saudi Vitrified Clay Pipes Co. (SVCP)

Saudi Vitrified Clay Pipes Co. (SVCP) announced that the Saudi Authority for Industrial Cities and Technology Zones (MODON) approved the transfer of the lease contract for the company's second plant to Al-Mutahida Al-Namothajiya Industries Co.

According to a statement to Tadawul, the company said that the agreement is now binding, and the financial impact will be reflected in Q3 2025.

Following this approval, the land and associated assets will be handed over to the buyer upon receiving the second payment of SAR 36 million, excluding any applicable taxes or fees.

According to data compiled by Argaam, SVCP recently signed an agreement with Al-Mutahida Al-Namothajiya to sell the assets of its second plant, located in Riyadh’s Second Industrial City, which manufactures vitrified clay pipes and accessories. The agreement also includes the transfer of the land lease for the plant site, with a total sale value of SAR 45 million, excluding any fees or taxes.

Under the terms of the agreement, an initial payment of SAR 9 million was made upon signing, while the second payment of SAR 36 million was contingent on MODON’s approval and completion of the lease transfer in accordance with regulatory procedures.