Paragraph 1

Alujain has signed an agreement to sell its entire 98.75% stake in Zain Industries worth 15.2 million rials to Falaj Holding Company.

Paragraph 2

The company said in a statement to Tadawul Saudi Arabia that it signed today, Monday, July 10, 2023, an agreement for a deal, with its completion subject to a number of preconditions, the first of which is that the price is 15.2 million rials in exchange for fixed assets and business reputation of the company.

Paragraph 3

Net current assets (current assets minus current liabilities) will be determined, verified and paid for within 120 days of the sale based on the company’s financial statements, which must be prepared within 90 days.

Conditions and Details

Condition 1

The third condition is obtaining the necessary regulatory approvals.

Details about Zain Industries

Zain Industries (Saudi Closed Joint Stock Company) was established in the Kingdom of Saudi Arabia. Its head office and factory are located in the industrial city of Jubail, with a capital of 22.5 million rials divided into 2.25 million shares, with a par value of 10 rials per share. Al-Lujain owns 98.75% of the company. nice.

Main Targets of Zain Industries

Zain’s main targets are the production of hygiene and home care products such as (starch products, air fresheners, cleaning sprays and liquids, furniture polish, hard and steel surfaces), insecticides and all public health products.

Financial Information

The company stated that the balance sheet value of the company as of March 31, 2023 is about 19.24 million rials.

According to the financial statements of Zain Industries over the past three years, its revenue in 2020 was 14.38 million rials.

And in 2021 in the amount of 23.9 million rials, in 2022 in the amount of 21.9 million rials.

The net loss of Zain Industries in 2020 was 4.18 million rials, and in 2021 it was 2.38 million rials.

In 2022, the amount will be 7.02 million rials.

Impact and Future Plans

Alujain’s Core Business

Alujain stated that the nature and size of Zain Industries’ business in the detergents and consumer products sector is not commensurate with Alujain’s core business in the petrochemicals sector, and the financial impact of this transaction is expected to be reflected in the second half of 2023.

It states that he will use the proceeds from the sale of the asset for the general purposes of the company.

Credit Line Agreement Amendment

Al-Lujain announced that it has amended the credit line agreement signed on August 16, 2021 and received Islamic Shariah compliant refinancing loan facilities in the amount of 1.263 billion riyals from Alinma Bank at competitive prices and terms in order to finance investment goals of the company.

The company said in a separate statement to Tadawul Saudi Arabia today, Monday, that it has signed an agreement to reschedule funding today, July 10, 2023.

It says that the value of the new credit lines is approximately 1.263 billion rials, while the remaining part is carried over is 863.561 million rials.

She clarified that the financing period before re-registration before re-registration was 8 years, and after re-registration it became 9 years (including one grace year).