SPM sells land in Riyadh for SR24.8 million

The Saudi Paper Manufacturing Company announces the sale of piece of land in the city of Riyadh, Al-Sulay District owned by one of its subsidiaries, with a value of SAR 24,762,375.

Transaction Terms:

1) The selling price is SAR 24,762,375 (twenty four million seven hundred and sixty two thousand and three hundred and seventy five riyal only) excluding the real estate transaction tax

2) There is no brokerage fees.

3) Full payment with a certified check.

Parties of the Transaction:

1) Saudi Recycling Company (Seller)

2) Aldrees Petroleum and Transport Services Company (Buyer)

Transaction Details: The contract of Sale of land

Transaction Value: SAR 24,762,375

Transaction Funding Method: Not applicable

Transaction Execution Date: 2022-06-14 Corresponding to 1443-11-15

Description of the Business of the Asset forming the Subject Matter of the Transaction: Warehouses

Asset Book Value: SAR 5,777,467

Transaction reasons: Apply the company’s strategy in securing the necessary financing for expansion projects and disposal of non-performing assets

Expected Impact of the Transaction on the Company and Its Operations: improve liquidity to support the company’s expansions.

– Depreciation calculation for PPE (Property, Plant, and Equipment) erected on the land has stopped.

– Achieving a capital gain of about SAR 19 million

Details of Using The Proceeds of the Asset Sale: The proceeds will be used to finance the expansion activities of the company