Takween Advanced Industries (Takween) has announced that the company has signed a SAR1.3 Billion Murabaha financing facility arranged by a syndicate of banks including Arab Bank, Samba Financial Group and Bank AlBilad. Takween's purpose of the financing is to fund the SAR910 million purchase price and loans of Savola Packaging Company, a leading packaging company in Saudi Arabia and major producer of PET packaging products, and its subsidiaries, to pay the fees and costs of the facilities, and to finance the working capital of Takween. The acquisition is representative of Takween's expansion aspirations and is expected to contribute significantly to its financial growth.
Latham advised Takween, which specializes in the production of plastic packaging solutions for the Kingdom of Saudi Arabia and the Middle East, on both its acquisition of Savola and associated Murabaha financing facility. HSBC Saudi Arabia acted as financial advisor to Takween.
Salman Al-Sudairi, Office Managing Partner of Latham & Watkins in Riyadh who led the Latham team, commented: "We are delighted to have represented Takween on both its landmark acquisition and related Islamic financing. The agreement by Takween to buy the Savola Packaging Company boosts Tawkeen's presence as a powerhouse in the packaging sector and allows Savola to focus on its core sectors of food and retailing. This transaction is the second Islamic acquisition financing we have closed this quarter, highlighting not only an increasingly active Saudi Arabian M&A market, but also reinforcing Latham's leadership in complex Islamic and acquisition financings."
The financing was led by Latham partner Salman Al-Sudairi and counsel Amar Meher, with associate Megren Al-Shaalan. The acquisition was led by counsel Omar Elsayed, with associates Saad Khanani and Najla Al-Gadi.Latham & Watkins LLP is a limited liability partnership organised under the laws of the State of Delaware, United States. Latham & Watkins LLP is registered with the Dubai Financial Services Authority and operates in the Dubai International Financial Centre as a recognized limited liability partnership.
© Press Release 2015