Savola Group — Capital/Financing Update 2011

Dec 26, 2011

Savola Announces the Signing of Contract for Selling its Shares of (40%) in the Land located in Jeddah to Kinan International Company for Real State Development

2050 · 26/12/2011 17:08:20 · Announcement #23453 · View on Saudi Exchange

Savola Announces the Signing of Contract for Selling its Shares of (40%) in the Land located in Jeddah to Kinan International Company for Real State Development

The Savola Group announces that it has signed on Monday 26th December, 2011 a contract to sell its shares in the land located in Jeddah equal to (40%) of the total land area 1,184,255.31 (one million one hundred eighty four thousands and two hundred fifty five) Square Meter, to Kinan International Company for Real Estate Development (30% of which owned by Savola Group) the owner of 60% of the land at a total price of SR 213.8 million. Pursuant to the contract, the Buyer will pay the price in three installments: 1st payment equal to SR 103 million has been paid upon contract signature, 2nd payment after two year from the date of signing the contract, and the 3rd installments to be paid after three year from the date of signing the contract. The sale price has been decided based on the market value, in accordance with the prior evaluations in this regard.

The Group will realize as a result of this transaction a net capital gain of SR 77.1 Million to be recorded in 4th quarter, 2011 results.

Dr. Abdulraouf M. Mannaa, Group MD, highlighted that this transaction is aligned with the Savolas strategy of focusing on the core business (Foods, Retail and Plastic) and the gradual exit from the non-core businesses, while maintaining its investments in the real estate business through Kinan International Company.

Since the deal is done with related party (Related party transaction), it will need Savola shareholders ratification at the nearest General Shareholders Assembly as per regulations.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.