Riyadh – Mubasher: Takween Advanced Industries Company has signed a non-binding Memorandum of Understanding (MoU) with China's Guofu for the sale of a 70% stake in Advanced Fabrics Factory Company, a 99% subsidiary of Takween.

The fair value (FV) of the total shares of the unit has been unanimously approved at SAR 307.5 million, according to a statement to the Saudi Stock Exchange (Tadawul) on Tuesday.

Moreover, the final agreement will be reached after the buyer completes the due diligence process.

According to the disclosure, the financial impact of the potential deal will be determined later and will reflect on the company's financials when a deal is inked.

Guofu will exclusively work with Takween on the potential sale deal starting as of the due diligence starting date for a renewable 365-day period.

It is worth noting that Guofu is a Chinese textile company specialised in manufacturing nonwoven fabrics.