The Clap
Taiba Investments (4090) completed all procedures to purchase stakes (direct and indirect) owned by Savola (2050), in the Knowledge Economic City (4310) and KEC Developers.
What
Taiba and Savola stated that the full value of the deal was received, setting Taiba’s stake in Knowledge Economic City at 9.6%, while its share in KEC Developers increased from 14.35% to 35.06%.
So What
The financial impact of this deal will help increase the company’s investments in the consolidated statement of financial position.
It will also reflect positively on the income statement, as a result of the expected future returns from this investment.
Now What
According to Savola, this deal brought in proceeds of SAR 459mn, which led to gains amounting to SAR 39mn. This will be reflected in the total comprehensive income for Q4 2022 in addition to a capital gain of SAR 42mn.
