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National Industrialization Company (“Tasnee”) announced the signing of the Share Purchase Agreement (“SPA”) to divest its downstream plastics operations (the “Business”) to the Saudi Holding Company for Conversion Industries (“Tahweel”). The Business comprises a well-established diversified portfolio of products across the plastics sector value chain, including BOPP films, agricultural films, HDPE pipes, industrial plastic pallets, plastic sheets, and HDPE/LLDPE geomembrane liners, among other products. The transaction includes the sale of Rowad Industrial Transformation Company (the “Target Company”) which includes a group of companies operating under one umbrella, consisting of: Rowad Global Packaging Company Limited, Taldeen Plastic Solutions, Rowad National Plastic Company Limited, Rowad International Geosynthetics Company, and Rowad United Marketing Company. The transaction consideration payable on completion shall be all cash, based on an Enterprise Value of SR 700 million.
Commenting on the transaction, Mr. Fawaz M. Al-Fawaz, Board Member and CEO of Tasnee, stated: “This transaction reflects Tasnee’s disciplined approach to capital allocation and our commitment to strengthening Tasnee’s financial position while supporting our strategic focus on petrochemicals. The transaction enables Tasnee to enhance its capital structure and redirect capital towards Tasnee’s long-term strategic objectives and delivering sustainable value creation for our shareholders. The Business is a viable platform, and we believe it will continue to thrive under Tahweel’s dedicated focus on downstream industries.”
Nader S. Al-Dakheel, CEO of Tahweel commented: “We are pleased to acquire this high-quality portfolio and welcome the experienced team behind it. We see strong potential in the Business, and we are committed to investing in its development to deliver continued value for our customers and support long-term growth. This acquisition enhances Tahweel’s portfolio with new product lines and capabilities, enabling us to serve customers more effectively with a broader, integrated range of solutions.”
Following the signing of the SPA, both parties will work closely to fulfill the remaining conditions required to complete the transaction, including securing final regulatory approvals, satisfying all contractual and legal completion terms, and executing the necessary corporate actions.
Trussbridge Advisory (DIFC) Limited acted as the exclusive financial advisor to Tasnee on the transaction, with King & Spalding serving as legal counsel. Deloitte advised Tahweel as financial advisor, and Dentons acted as its legal counsel.
Note: This story has not been edited by The Polymerupdate Editorial team and is auto-generated from a syndicated feed.
