Amiantit sells stakes in Moroccan units, makes SAR 14.2 mln accounting profit

Saudi Arabian Amiantit Co. signed, on Nov. 23, two agreements to sell its stakes in Moroccan units, generating an accounting profit of SAR 14.16 million, the company said in a bourse filing.

The relevant financial impact is expected to reflect on Q4 2020 financials.

The deal included the sale of its entire direct stake of 1.09 million shares, or 50% of Amitech Morocco, the fiberglass pipeline company, to the Austrian company Amiblu, in which Amiantit owns a 50% stake, for EUR 2.7 million (approximately SAR 12.03 million).

The financial impact will be a net accounting profit of SAR 16.98 million. This amount represents the sale price plus the previously impaired receivables worth SAR 4.95 million, as the company fully impairment this investment in 2018, including the outstanding receivables owed to the Saudi company by Amiantit Morocco. Since the book value of this investment is currently zero, a net cash of SAR 12.03 million will be generated from this sale.

The deal also included the sale of Amiantit’s entire stake of 1 million shares, or 15% of Amensouss S.A., which operates in trading pipes and its accessories, to the Moroccan company Nareva, at a total value of EUR 1.43 million (or nearly SAR 6.35 million).

The financial impact of this transaction will be a net loss of SAR 2.81 million, as the book value of this investment stands currently at SAR 9.17 million in Amiantit’s books.

The above mentioned funds resulted from the euro/Saudi riyal FX rate on Monday, Nov. 23, 2020, which might change at the time of collection, the statement added.