Savola in talks to sell packaging business

Savola in talks to sell packaging business
Updated 24 July 2014

Savola in talks to sell packaging business

Savola in talks to sell packaging business

DUBAI: Saudi Arabia's Savola Group has signed a non-binding agreement to sell its packaging business to Takween Advanced Industries 1201.SE, as it moves to focus on its core sectors of food and retailing, it said on Wednesday.
Savola, which reported a 32.4 percent jump in second-quarter net profit earlier this month to SR513.3 million ($136.9 million), said the proposed deal would have Takween acquire the entire share capital of Savola Packaging Co. (SPC).
It did not disclose the value of the acquisition, which is subject to various conditions and approvals. The agreement has an initial term of 16 weeks.
According to Savola's 2013 annual report, the packaging unit's consolidated net profit last year fell to SR69.5 million from SR100 million a year earlier, even though sales increased 6.3 percent to SR1.12 billion.