Saudi Arabia's Takween Advanced Industries is reportedly planning to start talks with Jfo Nonwovens regarding the sale of its fully-owned subsidiary Saudia Arabia Advanced Fabrics Company (SAAF). The company said in a stock exchange statement that it has signed a non-binding memorandum of understanding with JOFO Nonwoven Co to sell 70% of SAAF.
06.10.20
SAAF manufactures recycled polypropylene granules and nonwoven fabric at two plants in Saudi Arabia. The nonwovens target the hygiene and medical segments.
The two companies have agreed that the fair value of SAAF is about$82 million, the statement noted, adding that final negotiations would begin after the completion of due diligence by the Chinese firm.
The memorandum of understanding has a validity of 365 days beginning from the date of commencement of due diligence and is extendable with the consent of both parties, the statement said. It also clarified that the potential sale does not involve any related parties of the company.
Tadawul-listed Takween Advanced Industries manufactures and sells plastic packaging products and nonwoven fabrics with factories in Saudi Arabia and Egypt, according to company's profile on Tadawul's website.
Based in China, Jofo Nonwovens operates plants in Shandong and Guangdong. In May, the company announced it was purchased a spunmelt operation from PF Nonwovens in Wuxi, China.
