Amiantit sells full stake in Amiantit Fiberglass Egypt for SAR 7.5 mln

Saudi Arabian Amiantit Co. (Amiantit) signed an agreement to sell its entire stake in Amiantit Fiberglass Egypt, a joint venture between Lokma Group and Amiantit of Saudi Arabia, for SAR 7.5 million ($2 million), according to a bourse filing to the Saudi Stock Exchange (Tadawul) on Sunday.

Under the agreement, Amiantit will sell its entire 50% stake or 250,000 shares in Amiantit Fiberglass Egypt.

In addition, the Saudi-based firm will sell its full 49% stake or 94,600 shares in Ameron Egypt, a member of Lokma Group.

Amiantit also expected the financial impact of the deal to be reflected on its Q1 2020 financial results, noting that it will save SAR 7.5 million in cash, while it will incur SAR 15.7 million in losses on accumulated property rights due to currency exchange.

The company concluded that the transaction will result in a SAR 7.5 million net increase in consolidated property rights.