Data News > Saudi Paper Enhances Financial Position with Sale of Moroccan Subsidiary
Saudi Paper Enhances Financial Position with Sale of Moroccan Subsidiary
By KlickAnalytics Data Insights | October 2, 2024 08:04AM ET
- Saudi Paper Manufacturing Company sells entire share in Moroccan Paper Manufacturing Company for MAD 19 million
- Proceeds from the transaction to be used for general corporate purposes, specifically repayment of high-cost borrowings
- Sale deal subject to usual conditions, regulations, and procedures followed in Morocco
In a strategic move to strengthen its financial position and boost cash liquidity, the Saudi Paper Manufacturing Company has successfully sold its entire share in the Moroccan Paper Manufacturing Company at a value of MAD 19 million. The sold entity, fully owned by the Saudi Investment and Industrial Development Company, a subsidiary of Saudi Paper, had no book value as per the company's consolidated financial statements during the second quarter (Q2) of 2024 after reducing the value of the assets amounting to SAR 13.60 million.
This transaction aligns with Saudi Paper's strategy to invest in promising opportunities across the local market. The proceeds from the sale deal will be utilized for general corporate purposes, with a specific focus on repaying a portion of the company's high-cost borrowings. The sale agreement is subject to the customary conditions, regulations, and procedures followed in Morocco, ensuring a seamless transition of ownership.
Back in July, Saudi Paper secured a SAR 150 million loan from Emirates NBD to enhance its operational operations. This recent sale of shares in the Moroccan firm underscores the company's commitment to financial stability and its efforts to optimize resources for future growth and development. Exciting times ahead for Saudi Paper as it continues to explore new avenues for investment and expansion in the market.
- Proceeds from the transaction to be used for general corporate purposes, specifically repayment of high-cost borrowings
- Sale deal subject to usual conditions, regulations, and procedures followed in Morocco
In a strategic move to strengthen its financial position and boost cash liquidity, the Saudi Paper Manufacturing Company has successfully sold its entire share in the Moroccan Paper Manufacturing Company at a value of MAD 19 million. The sold entity, fully owned by the Saudi Investment and Industrial Development Company, a subsidiary of Saudi Paper, had no book value as per the company's consolidated financial statements during the second quarter (Q2) of 2024 after reducing the value of the assets amounting to SAR 13.60 million.
This transaction aligns with Saudi Paper's strategy to invest in promising opportunities across the local market. The proceeds from the sale deal will be utilized for general corporate purposes, with a specific focus on repaying a portion of the company's high-cost borrowings. The sale agreement is subject to the customary conditions, regulations, and procedures followed in Morocco, ensuring a seamless transition of ownership.
Back in July, Saudi Paper secured a SAR 150 million loan from Emirates NBD to enhance its operational operations. This recent sale of shares in the Moroccan firm underscores the company's commitment to financial stability and its efforts to optimize resources for future growth and development. Exciting times ahead for Saudi Paper as it continues to explore new avenues for investment and expansion in the market.
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