Saudi news

“Taiba Investment” completes the purchase of “Savola” shares in “Knowledge City” and “Knowledge City Developers”

Taiba Investment Company announced the completion of all procedures for the purchase of shares and stakes (direct and indirect) owned by Savola in Knowledge Economic City and Knowledge City Developers.

The two companies stated in two statements on “Saudi Arabia’s Tadawul” today, Thursday, that the full value of the deal had been received by “Savola”, explaining that, thus, the ownership percentage of “Taiba Investment” in the capital of Knowledge Economic City Company would have increased from 3.2% to 9.6%. While the stake in Knowledge City Developers Company increased from 14.35% to 35.06%.

And “Taiba Investment” stated that the financial impact of this deal will be reflected in an increase in the company’s investments in the consolidated statement of financial position, while that impact will be positively reflected in the income statement through the expected future returns from this investment.

For its part, Savola stated that this deal resulted in cash proceeds equal to 459 million riyals, which resulted in gains amounting to 39 million riyals that will be reflected in total other comprehensive income for the fourth quarter of this year, in addition to a capital gain of 42 million riyals that will be reversed. In the statement of profit or loss for the fourth quarter of 2022.

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