Amiantit obtains necessary approvals for selling its CPIC’s stake

Saudi Arabian Amiantit Co. said that it obtained the necessary approvals by the various Chinese Authorities and Administration Offices to sell its stake in CPIC.

According to Argaam; Amiantit signed an agreement in June to sell its 5.5% ownership in Chongqing Polycomp International Corp., (CPIC), a China producer of Glass fiber established in Chongqing, China, for an amount of US$ 27.5m (Approx. SAR 103.1m), to the majority shareholder; Yuntianhua Group Co., Ltd.

These approvals are effectively closing the deal and the amount will be received on annual installments starting from December 31, 2014 till December 31, 2016; the company said in its filing to Tadawul today.
The Group will realize a capital gain and forex gain of SAR 21m with the possibility of incurring an amount of SAR 3m as capital gain taxes.

The Company added that it will book a provision covering such exposure and recognize a net capital gain of SAR 18m in September 2014.