Saudi Ceramic Co. — Capital/Financing Update 2021

Jul 14, 2021

Saudi Ceramic Co. Announces Purchase Land in the value of 55.9 million Saudi Riyals

2040 · 14/07/2021 15:47:06 · Announcement #64185 · View on Saudi Exchange

Saudi Ceramic Co. Announces Purchase Land in the value of 55.9 million Saudi Riyals

Element List	Explanation
Transaction Details	Saudi Ceramic Company announces that the Company signed on Wednesday, 4 Dhu al-Hijjah 1442 corresponding to July 14, 2021 an agreement to purchase a plot of land with an area of 111,827 square meters in the new industrial area in Riyadh, adjacent to the Company's central warehouses, for an amount of 55.9 million Saudi Riyals, excluding real estate tax. The amount is partly funded by a Murabaha loan and partly by the Company's self-financing sources. Note that the agreement does not include a purchase commission. The purchase price is also lower than the average evaluations obtained by the Company from three accredited valuation offices.
Transaction Value	55.9 million Saudi Riyals
Transaction Terms	The primary terms of the agreement include the following:

1 - The purchase price of the land shall be paid by a certified bank cheque delivered to the seller upon completion of ownership transfer of the lands’ title deeds.

2 - This purchase is directly between the two parties without any brokers or commission.

3- The Company is obligated to pay the real estate tax in accordance with the regulations. Parties of the Transaction Saudi Pan Gulf Holding Company (the seller) - note that there are no related parties in the transaction Transaction Funding Method The transaction will be financed through a Murabaha loan covering 70% of the total purchase amount and the remaining part will be covered by the company's self-financing sources. Transaction Execution Date 2021-07-14 Corresponding to 1442-12-04 Description of the Business of the Asset forming the Subject Matter of the Transaction A plot of land with an area of 111,827 square meters, adjacent to the company's central warehouses Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction Does not apply Transaction reasons To support the Company's strategic plans and increasing the storage capacity of warehouses. Expected Impact of the Transaction on the Company and Its Operations The financial impact of this transaction on the statement of financial position will be reflected in the interim condensed consolidated financial statements for the third quarter of 2021 in the cash and cash equivalents, non-current assets, and borrowings. Related Parties There are no related parties involved in the agreement. Additional Information The agreement was done with the owner directly without the presence of an intermediary, and the Company confirms that the cost of acquiring the land is less than the average of three evaluations obtained from licensed valuers. The average of the evaluations submitted was 59,268,310 SAR.

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