Saudi Savola sells carton factory
The Jeddah-based Savola Group recently sold its Saudi Carton Factory to the Cartons Manufacturing Limited Company for 73.6 million Saudi riyals ($19.6 million), reported the London-based Al-Sharq Al-Awsat daily.
Chairman of the Board of Savola, Adel Faqih, stated that the group would use the money acquired from the sale to strengthen other commercial fields, such as edible oils and retail.
In addition, Savola recently announced that it would award dividends of 138.3 million Saudi riyals ($36.8 million) to stockholders for the end of fiscal year 2000, with each stock dividend equaling SR 11. Savola shares traded at SR 189 on the local securities market.
Established in 1979 with an initial capital of SR 90 million ($ 24 million), the joint stock Savola Group operates 46 stores in Saudi Arabia and claims to control 80 percent of the vegetarian oils market of the Kingdom.
According to the CCFI Stock Market Weekly, the financial results of the company deteriorated in the year 2000 in terms of sales and profitability. The sales decreased by 13.64 percent resulting in a decrease of 15.22 percent in the gross profits as compared to previous year.
In 1999, Savola and Azzizyah-Panda United Co. merged, under the new name Savola-Al-Azzizyah United, subsequently the group capital rose to SR 628.572 million. The 4,200-employee group now consists of Savola Edible oil co., Saudi Paper Cup & Container co., Snack Food co., (Tasali) Savola Plastic Factory, Savola Tin Factory, United Sugar co. and Saudi Arabian Glass co. ― (MENA Report)
© 2001 Mena Report (www.menareport.com)