Savola Group — Capital/Financing Update 2011

Oct 26, 2011

Savola Announces the Signing of Contract for Selling its Shares of (75%) in Al Yasmin Land in Riyadh to Kinan International Company for Real State Development

2050 · 26/10/2011 16:08:47 · Announcement #23197 · View on Saudi Exchange

Savola Announces the Signing of Contract for Selling its Shares of (75%) in Al Yasmin Land in Riyadh to Kinan International Company for Real State Development

The Savola Group announces that it has signed on Wednesday 26th October, 2011 a contract to sell its shares in the land located in Riyadh equal to (75%) of the total land area (906.438.6 Square Meter) to Kinan International Company for Real Estate Development (30% of which owned by Savola Group) the owner of the remaining 25% of the land at a total price of SR 394.1 Million, i.e. SR 579.7 per square meter. Pursuant to the contract, the Buyer will pay the price in four installments: 1st payment equal to SR 37.4 Million to be paid upon singing the contract, 2nd payment after one year from the date of signing the contract, and the 3rd & 4th installments to be paid after one year from the preceded installments. The sale price has been decided based on the market value, in accordance with the prior evaluations and the purchase offers received in this regard.

The Group will recognize as a result of this transaction a net capital gain of around SR 76 Million, which will be reflected in the 4th quarter 2011 financial 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 approval at an Ordinary General Assembly according to the related regulations; the Group will update the market about any material & major developments occurred in this regar

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