Saudi Paper sells shares Moroccan firm

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The Saudi Paper Manufacturing Company sold its entire share in the Moroccan Paper Manufacturing Company at a value of MAD 19 million.

The sold entity was fully owned by Saudi Investment and Industrial Development Company, a subsidiary of Saudi Paper, according to a bourse disclosure.

The transaction has no book value as in the Tadawul-listed company’s consolidated financial statements during the second quarter (Q2) of 2024 after reducing the value of the assets, amounting to SAR 13.60 million.

Saudi Paper highlighted that the agreement will anchor its financial position and enhance the level of cash liquidity in line with its strategy to invest in promising opportunities across the local market.

Meanwhile, the proceeds from the transaction will be used for general corporate purposes, specifically repayment of a portion of the company's high-cost borrowings.

The sale deal is subject to the usual conditions, regulations, and procedures followed in Morocco.

Last July, Saudi Paper obtained a SAR 150 million loan from Emirates NBD to enhance operational operations.