Amiantit says relieved of Alinma Bank obligations after transferring subsidiary ownership

Saudi Arabian Amiantit Co. headquarters

Saudi Arabian Amiantit Co. completed, on Feb. 14, the paperwork required for transferring the ownership of its subsidiary to Alinma Bank's investment fund. In return, it was relieved of all obligations towards Alinma Bank, amounting to SAR 572.7 million. These obligations constitute about 50% of Amiantit’s total obligations owed to banks.

In a statement to Tadawul, Amiantit said the financial impact of this transaction is to record an accounting profit of SAR 482.5 million, which will not result in any cash inflows. The financial impact will show in the first quarter of 2024.

A reduction in accumulated losses will be separately announced once the auditor’s report is available, Amiantit added.

In December 2023, the company signed a settlement agreement with Alinma Bank to transfer its entire stake in its wholly owned subsidiary, International Infrastructure Management and Operation Co., to the bank’s investment fund.