Amiantit completes merger procedures of Hobas JV

Saudi Arabian Amiantit Co. said that most legal formalities necessary for the closure of the merger with Hobas Europe of Austria have been completed by Monday.

The merger is expected to result in a capital gain of between SAR 50 million and SAR 60 million and an estimated positive cash flow between SAR 2 million and SAR 4 million, during the third quarter of 2017, the Saudi-listed firm said in a statement on Tadawul.

Earlier this month, Amiantit had received the European Commission’s letter of approval for the acquisition of joint control over Hobas Europe of Austria by Wietersdorfer of Austria and Amiantit, Argaam reported.

Last February, the Saudi-listed firm signed a joint venture agreement with Austria’s WIG Wietersdorfer Holding GmbH (WIG) to merge Amiantit’s European pipe manufacturing and sales companies and its Flowtite technology with the Hobas AG group of companies in Europe.