Saudi Steel Pipe expects SAR 18.9 mln positive result in Q3 2021 from sale of subsidiary’s operating assets

Logo of Saudi Steel Pipe

Saudi Steel Pipe Co. expects to record a positive result of SAR 18.9 million from the sale of main operating assets of its wholly-owned subsidiary, Titanium Steel & Manufacturing Co. Ltd., in Q3 2021, the firm said in a statement to Tadawul today, Oct. 4.

The main operating assets sold include buildings, machinery and equipment, with a total net book value of SAR 17.4 million.

Based on amended payments terms, SAR 7.2 million ($1.9 million) was paid pre-closing, and the remaining of SAR 29.1 million ($7.8 million) is to be paid in cash within five business days from closing, the statement said.

The sale proceeds will mainly be used to offset Titanium Steel & Manufacturing’s outstanding loans and other obligations, it added.

On Oct. 3, Saudi Steel Pipe announced the closing of the transaction entered into by Titanium Steel & Manufacturing to sell its main operating assets to Koch Chemical Technology Group Saudi Arabia, Argaam reported.

In April, Saudi Steel Pipe said that Titanium Steel & Manufacturing had inked a definitive asset purchase agreement with Koch Chemical Technology to sell its core operating assets.

The transaction was valued at $9.7 million (SAR 36.3 million), which was to be paid in cash on closing the deal.