SIDC books SAR 66.5 mln impairment provision for losses on Ibn Rushd stake

Saudi Industrial Development Co.’s (SIDC) board of directors opted for a SAR 66.5 million impairment provision, which brings the book value of SIDC’s stake in Arabian Industrial Fibers Co. (Ibn Rushd) as of Dec. 31, 2019 to zero, the company said in a bourse statement.

The decision followed the negative impact on SIDC’s investment in Ibn Rushd due to a SAR 2.8 billion provision booked by the latter for impairment in machinery and equipment.

The Saudi-listed firm had previously booked SAR 66.4 million impairment provisions for the same investment in previous years.

The company will continue studying and reviewing Ibn Rushd’s results in the upcoming periods to reflect any change in the fair value of the stake that might arise, the statement added.

SIDC holds a 1.56% stake a nominal value of SAR 132.9 million, according to data compiled by Argaam.