Nama Chemicals sells full stake in Yansab for SAR 139.7 mln to reschedule SIDF loans

Logo of Nama Chemicals Co.

Nama Chemicals Co. finalized the sale of its entire stake, or 2 million shares, in Yanbu National Petrochemical Co. (Yansab), for SAR 139.65 million after commissions and value-added tax (VAT), the company said in a bourse filing.

The move came as Nama sought to reschedule its bad debts with the Saudi Industrial Development Fund (SIDF). It was in talks with SIDF to apply some of the relevant agreed terms and conditions, which include selling Yansab shares that were previously pledged to the fund as a condition for signing the final rescheduling agreement.

The net proceeds from the sale will be used as one-time partial repayment of the company's loans owed to SIDF, Nama added, expecting the positive financial impact of the deal to appear in Q3 2021.

The positive financial impact will appear in the statement of equity, which will reflect the net realized profit from the sale, amounting to SAR 119.60 million, which will appear under retained earnings as part of equity. This will offset the company’s entire accumulated losses, and reduce the short and long-term loans by the same amount of repayment at the net realizable value (NRV), which in turn strengthens Nama’s financial position and ratios.

On April 1, the Saudi-listed firm received a final offer from SIDF to reschedule its defaulted loans, Argaam earlier reported.

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