Takween inks MoU to acquire Chinese partner’s stake in SAAF

Logo of Takween Advanced Industries Co.

Takween Advanced Industries Co.’s board of directors approved today, Dec. 17, the signing of a memorandum of understanding (MoU) with Chinese partner JOFO Nonwovens Co. Ltd. to acquire the latter’s entire 70% stake in Advanced Fabrics Factory Co. (SAAF), represented by 129,360 quotas.

Takween currently holds a 30% ownership interest in SAAF, represented by 55,440 quotas, the company said in a statement to Tadawul.

Upon completion of the potential transaction, SAAF will become wholly owned by Takween, with a 100% ownership interest.

The board further authorized the Chairman to complete the required regulatory procedures and to negotiate and sign the final agreements, subject to reaching a definitive deal between the parties.

According to Takween, the MoU is aimed at reaching an agreement on the general framework for studying the potential takeover, as a preliminary step toward fulfilling the required regulatory requirements and finalizing the deal.

Takween holds the explicit right to extend the 60-day MoU by written notice to the other party.

Takween also noted that George Abraham is a related party, in his capacity as a board member in Takween and member in the board of managers of SAAF.

According to the company, the related financial impact cannot be determined at this stage, as the MoU relates to the evaluation of the potential acquisition and the conduct of due diligence.

Any material disclosures related to this transaction will be made in due course.