Savola Group — Capital/Financing Update 2014

Sep 14, 2014

Savola Announces the Signing of Agreement for Selling its entire stake in Masharef Project to Kinan International Company for Real Estate Development

2050 · 14/09/2014 08:54:52 · Announcement #35595 · View on Saudi Exchange

Savola Announces the Signing of Agreement for Selling its entire stake in Masharef Project to Kinan International Company for Real Estate Development

The Savola Group (Savola) announces that it has signed on Thursday 11th of September, 2014 an agreement to sell its entire stake in Masharef Project - which is a real estate development project located in Jeddah (Masharef) - to Kinan International Company for Real Estate Development (29.9% of which is owned by Savola). The sold stake represents the Savola's entire ownership, both direct and indirect, of 30.4%, in Masharef at a total price of SAR 593.5 Million.

Pursuant to the agreement, the Buyer will pay the price in four installments: 1st payment equal to SAR 112 Million paid upon signing the agreement, 2nd payment amounting to SAR 167.6 Million payable on 1st December 2015, and the 3rd & 4th installments (SAR 159.8 Million and SAR 154.1 Million respectively) each to be paid after one year from the preceding installments. The sale price has been decided based on market value and in accordance with independent evaluations made in this regard.

Savola will recognize as a result of this transaction a net capital gain of around SAR 187 Million, which will be reflected in the 3rd quarter 2014 financial results.

Dr. Abdulraouf M. Mannaa, Savola CEO & MD, stated that this transaction is aligned with the Savola's strategy of focusing on its core businesses (Foods and Retail sectors) and gradually exiting from its non-core businesses. Proceeds from this transaction will be utilized for supporting Savola's core businesses.

Since the transaction is made with a related party, it will need Savola shareholders approval at the nearest Ordinary General Assembly as per regulations. It is worth mentioning that Mr. Mohammed A. Alfadl, Chairman of Kiana Int. Co. & Mr. Amin M. A. Shaker and Bader Abdullah Al-Issa are Savola's Board members as well as Kianan's Board members.

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.