Saudi Ceramic ups stake in affiliate to 61% in debt-to-equity swap

Saudi Ceramic Co.’s stake in its affiliate, Ceramic Pipes Co., was increased to SAR 94.9 million (a controlling stake of 61 percent) from SAR 28.5 million (50 percent) in a debt-to-equity swap, to enhance the latter's financial position and production capacity.

Ceramic Pipes owes SCC a total debt of SAR 66.4 million, SCC said in a bourse statement on Wednesday.

The decision followed approval from Ceramic Pipes' board of directors and extraordinary general assembly on converting all interest-free loans and shareholder debts to equity.

Ceramic Pipes' financial statements will be consolidated into SCC's results starting Q3 2018, after completing the regulatory procedures, the statement added.