Savola Group — Capital/Financing Update 2011

Dec 27, 2011

The Savola Group, announces the signing of a Contract to sell its stake in lands located Al-Madina Al-Monawarah City

2050 · 27/12/2011 09:40:44 · Announcement #23464 · View on Saudi Exchange

The Savola Group, announces the signing of a Contract to sell its stake in lands located Al-Madina Al-Monawarah City

The Savola Group announced that it has signed on 26th December, 2011 a sale contract with Knowledge Economic City Co. (KEC the buyer) to sell its 80% direct and indirect stake in Al-Mujamaat United Company for Real Estate (a Closed Joint Stock Company (, to which Savola Group (the seller) will transfer its stake of 80% in the two lands located in Al-Madina Al-Monawarah City and adjacent to KECs project with a total area of 2,026,245 (two millions, twenty six thousands and two hundreds forty five) square meters. The total value of the transaction reached SR 631.3 million, i.e. SR 389.5 per square meter. The sale price of the lands has been decided based on the market value in accordance with the prior evaluations done in this regard.

Pursuant to the contract, the Buyer will pay an advance amount (Aarboon) of SR 16.3 million to the seller upon contract signature and the remaining amount of SR 615 to be paid upon completion of transferring of 80% of Al-Mujamaats shares under KEC name or any of its subsidiaries and after transferring the said lands deed ownership to Mujamaat.

Dr. Abdulraouf M. Manna - Managing Director of the Group indicated that this step is in line with the Groups strategy, which aims to focus on its core operations in its key sectors (Foods, Retail and Plastics), he also highlighted that upon completion of the said transaction, the Group is expected to realize a capital gain of SR 231.4 million, which will be booked during the year 2012.

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