Savola’s shares falls after shareholders approve $122 million sale of KEC to Taiba

The deal comes in line with Savola’s plans to exit investments in non-core sectors. (Supplied)
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RIYADH: Shares of Savola Group Co. fell 2.13 percent, after its shareholders approved selling all Savola’s shares in Knowledge Economic City Co. to Taiba Investments Co. for SR459 million ($122 million).

Savola saw its shares decline to SR29.85 at the end of Wednesday's session.

Savola owns an 11.47 percent stake in KEC — direct ownership of 6.40 percent and indirect ownership of 5.07 percent — through Knowledge Economic City Developers, according to a bourse filing.

The deal comes in line with Savola’s plans to exit investments in non-core sectors in order to focus on its primary operations in the food and retail sectors, Savola said earlier.

It's worth mentioning that Taiba Investments announced on Sep. 14 that it had received the approval of its shareholders to acquire all of Savola's shares in Knowledge Economic City.