Takween gets GAC nod for China’s JOFO 70% acquisition of subsidiary

Takween Advanced Industries

Takween Advanced Industries Co. (Takween) received no-objection from the General Authority for Competition (GAC), on June 21, to complete an economic concentration process with China-based JOFO Nonwoven Co. Ltd. that will acquire 70% of its subsidiary, Advanced Fabrics (SAAF).

The company said in a bourse statement that 90% of the agreement is complete and is expected to be fulfilled on June 30.

The agreement is still subject to several conditions, including obtaining the approval of Ministry of Investment (MISA).

Takween will announce the financial impact following the completion of all approval requirements.

Any material developments will be disclosed in due time.

According to data compiled by Argaam, Takween signed a share purchase agreement in December 2020 with JOFO Nonwoven Co. Ltd. to sell 70% of SAAF. Under the agreement, Takween agreed to sell 92,260 shares in SAAF, representing 70% of its share capital, for a price based on a total value of $90 million (SAR 337.5 million) for 100% of SAAF shares, subject to certain adjustments based on net debt and the working capital at completion date.

The net capital gain resulting from the transaction after writing off part of the dues to Takween as stated in the agreement is about SAR 57.6 million (net result in the income statement).