Tasnee exits plastics conversion, redirecting capital to a battered balance sheet

Tasnee closed its full exit from plastic conversion, completing the sale of Al Rowad Industrial Transformation Company to Tahweel Holding for SAR 684 mn, according to a Tadawul disclosure. The transaction closed on Monday after all conditions, including General Authority for Competition clearance, were met.

The final figure came in below both the SAR 700 mn enterprise value announced in March, after a closing banknote adjustment, and Al Rowad’s SAR 714 mn book value. The discount to book suggests Tasnee was willing to leave some value on the table to get the asset off its books and put the capital to work elsewhere.

What Tahweel is buying: Al Rowad houses a group of specialized plastic conversion firms, including Al Rowad Global Packaging, Taldeen Plastic Solutions, and Al Rowad International Industrial Films — producing packaging films, polyethylene pipes, agricultural plastics, and geomembrane liners, alongside a nationwide retail distribution network.

The logic for Tasnee is a return to basics. The sale lets Tasnee refocus on its core role as a Tier-1 upstream petrochemical producer and put the proceeds toward debt reduction on a balance sheet that has taken heavy hits. The company posted a SAR 889 mn net loss in 1H, reversing SAR 830 mn in net income a year earlier, while revenue fell nearly 30% y-o-y to SAR 875 mn, extending a similar pattern from 2025. Against that, the exit prioritizes liquidity and a simpler structure over the vertical integration Tasnee once pursued.