The Savola Group (Savola) announces the signing of a non-binding memorandum of understanding (MOU) on 22 July 2014, and the commencement of exclusive discussions, with Takween Advanced Industries (Takween) in relation to the proposed acquisition by Takween of the entire share capital of the Savola Packaging Company (Savola Packaging), a wholly owned subsidiary of Savola (the Proposed Transaction).
The Proposed Transaction is subject to various conditions and approvals including, without limitation, 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 board of directors as well as any necessary shareholders and regulatory consents.
The MOU, which has an initial term of up to 16 weeks (i.e. up to 11th November, 2014), sets out the general framework that the parties will work towards in relation to the Proposed Transaction.
Dr. Abdulraouf M. Mannaa, Savolas CEO & Managing Director emphasized that this transaction is affirming Savola strategy of focusing on its growing core sectors (Foods and Retail).
Further announcements on Tadawul will be made if any material developments take place with regard to this transaction.