SPIMACO to cut stake in Ibn Rushd after SAR 119 mln impairment

Saudi Pharmaceutical Industries & Medical Appliances Corp. (SPIMACO) said its board of directors agreed on Wednesday to reduce the company’s stake in Arabian Industrial Fibers Co. (Ibn Rushd), after the pharmaceutical manufacturer recorded an impairment of 33 percent, or SAR 118.5 million in Q4-2015.

The financial impact was reflected on SPIMACO’s fourth-quarter results, which were released earlier on Thursday.

The Saudi-listed firm also said it would continue to review the fair value of its interest in the affiliate as it undergoes a restructuring plan to enhance performance and boost profitability.

SPIMACO currently holds a 4.17 percent stake in Ibn Rushd, valued at SAR 355 million. SABIC owns 45.19 percent of the Yanbu-based joint venture, while Saudi Arabia’s Public Investment Fund (PIF) has a 33.5 percent position in the firm.