Takween Advanced Industries announces the signing of a Memorandum of Understanding with the Savola Group in relation to the potential acquisition of its operations in the plastics and packaging sectors through the acquisition of the entire share capital of the Savola Packaging Company ("Savola Packaging"), a wholly owned subsidiary of Savola and the company would declares following:
1. The MOU was signed on 22 July, 2014 and will be effective from the date of signature. The MOU, has an initial term of up to 16 weeks (i.e. up to 11 November, 2014).
2. The main scope of work of the MOU is subject to Takween completing detailed due diligence on Savola Packaging to its reasonable satisfaction, the negotiation and entry by Takween and Savola into definitive agreements in relation to the Proposed Transaction, the approval by each party's board of directors as well as any necessary shareholders and regulatory consents.
3. Takween has appointed HSBC Saudi Arabia Limited, a licensed authorised person, as its financial advisor in relation to the proposed acquisition.
Mr. Abdulmohsen M. Al-Othman, Managing Director of Takween Advanced Industries emphasized that this transaction is affirming Takween’s strategy of growth in the plastic packaging sector in both local and overseas markets.
Further announcements on Tadawul will be made if any material developments take place with regard to this transaction.