Northern Cement sells entire stake in Cement Experts for $55M

Logo of Northern Region Cement Co. 

Northern Region Cement Co. signed an agreement to sell its entire shares, or 50% of Cement Experts Co. for Development and Investment to UAE-based AMP Global Trading for $55 million, the company said in a statement to Tadawul.

Cement Experts owns 51% of the joint investment in the Al-Kubaisa factory in Iraq.

The asset's book value is $42.9 million, Northern Cement said, adding that Cement Experts has investments in Iraq's cement industry.

The company indicated that the deal aims to enter other strategic partnerships that enable it to expand investment into promising markets.

Northern Cement added that the deal proceeds will be allocated to external investments, offering promising opportunities, in addition to the repayment of some of the high-cost loans given the current high financing cost rates.