Saudi Arabian firm Takween Advanced Industries has signed a SAR1.3bn ($346.6m) Islamic loan with a consortium of local banks for Savola Packaging buyout.

In December 2014, the company agreed to acquire Savola Group’s packaging unit for $242.5m.

The consortium comprising Arab National Bank, Samba Financial Group and Bank Albilad will provide the loan to Takween in two parts, Reuters reported citing a Takween bourse filing.

“The acquisition is in line with Savola’s strategy to focus on its core sectors of food and retailing.”

Takween will also secure a three-year SAR390m loan to be used as working capital, besides a seven-year facility that will completely cover the acquisition, including the assumption of Savola Packaging’s debt, which has a one-year grace period before repayments start.

The company did not mention the date for the completion of the transaction. However, it stated that the payment of the purchase price and transfer of ownership is currently in progress.

The acquisition is in line with Savola’s strategy to focus on its core sectors of food and retailing.

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Savola Packaging owns the subsidiaries Al-Sharq Plastic Company and New Marina Plastics Company in Egypt. It is engaged in the production of plastic containers, barrels, bottles and covers, with an annual production capacity of 200,000t.

Savola Packaging generated SAR91.2m ($24.2m), SAR100.2m ($26.6m) and SAR69.5m ($18.4m) of profits in 2011, 2012 and 2013, respectively.