Saudi Arabia-based food producing firm Savola Group has agreed to sell its packaging unit Savola Packaging group to Takween for $242.46m (910m Saudi Riyals).
The complete purchase price will be financed through a syndicate of Saudi banks, which will be announced after the conclusion of all financing negotiations with the banks, and which is subject to the approval of the ordinary general assembly of Takween.
Savola had previously announced the signing of a non-binding memorandum of understanding (MoU) on 22 July 2014, which resulted in exclusive discussions with Takween in relation to the proposed acquisition of the entire share capital of Savola Packaging which is a wholly owned subsidiary of Savola.
Savola went ahead with the sale of its packaging unit to focus on its core sectors of food and retailing.
The MoU had the initial term of about 16 weeks, up to 11 November which was later extended to 31 December 2014.
The Savola Group was established in 1979 and manufactures and markets edible oil and vegetable ghee in Saudi Arabia.
Savola owns two subsidiaries (Al-Sharq Plastic Company and New Marina Plastics Company in Egypt) and produces plastic containers, barrels, bottles and covers, with an annual production capacity of 200,000 tonnes.
Takween said in a statement that the completion of the transaction and payment are subject to satisfaction of a number of conditions before 31 March 2015, including completing certain regulatory procedures, obtaining consents from government agencies including the Competition Council and the satisfaction of certain commercial conditions agreed between both the parties.
