Tasnee exits its plastic conversion arm in SAR 700 mn sale: National Industrialization Company (Tasnee) has agreed to sell 100% of its subsidiary, Al‑Rowad Industrial Transformation Company, to Saudi Holding Company for Conversion Industries (Tahweel Holding) for an enterprise value of SAR 700 mn, according to a Tadawul disclosure. The allcash share purchase agreement will see Tasnee fully exit the plastic conversion business, a sector it once viewed as a key downstream play.

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Priced just below book value: The SAR 700 mn enterprise value is slightly below the asset’s SAR 714 mn book value, suggesting Tasnee was motivated to close the transaction quickly to redirect capital. The agreement is pending clearance from the General Authority for Competition.

Al‑Rowad’s portfolio: The company operates a group of specialized plastic conversion firms, including Al-Rowad Global Packaging, Taldeen Plastic Solutions, Al-Rowad National Plastic, Al-Rowad International Industrial Films, and Al-Rowad United Marketing. Together, they produce packaging films, polyethylene pipes, agricultural plastics, geomembrane liners, and other industrial products, while also managing a retail distribution network across the Kingdom.

Why it matters

Tasnee is going back to basics: Tasnee can now focus on its core role as a Tier‑1 upstream petrochemical producer, using proceeds from the sale to reduce debt and strengthen its balance sheet, prioritizing liquidity and a simpler corporate structure over vertical integration.

ADVISORS- Trussbridge is financial advisor and Kings & Spalding is providing counsel to Tasnee, while Tahweel tapped Deloitte for financial advisory and Dentons for counsel.

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