Amiantit acquires minority interest in subsidiary, becomes sole owner

Saudi Arabian Amiantit Co. has signed a contract to acquire a 20 percent stake in Amiantit Rubber Industries Co. Ltd. (ARIL) from Deccan Enterprises Ltd. India, the company said in a bourse statement.

The transaction, which has a total value of SAR 1.8 million, will be self-financed.

Upon completing the deal, Amiantit will become the sole shareholder of ARIL, which operates in the rubber manufacturing industry.

The agreed effective date of the transaction is Dec. 31, 2017.

“Since the consideration paid is lower than the book value of the shares purchased, the expected financial impact of the deal is a net increase in the group’s total shareholders’ equity of about SAR 700,000,” the statement said.

Amiantit will pay the agreed amount upon completing required legal formalities.