Amiantit inks $2 mln deal to sell stake in Turkish subsidiaries

The Saudi Arabian Amiantit Co. has signed a memorandum of understanding (MoU) to sell 30 percent of its holding in Turkey’s Subor Boru Sanayi ve Ticaret A.Ş. (Subor) and Subor Gap Boru Sanayi ve Ticaret A.Ş (Subor Gap) for a total value of $2.4 million (nearly SAR 9 million).

The equity was sold to its partner, Yapı Merkezi İnşaat ve Sanayi A.Ş (YM), Amiantit said in a bourse filing on Sunday.

Following the ownership transfer, Amiantit will hold 20 percent of Subor shares, while YM will become the sole controlling and majority partner.

“If approved, the sale will generate a net capital gain of approximately SAR 0.53 Million in the first quarter of 2019,” Amiantit added.

The accounting for Amiantit’s remaining stake in the two companies will continue to follow the equity method for associate investments.

The MoU will be ratified during the upcoming general assembly in the coming weeks.

Subor and Subor Gap are manufacturers of fiberglass pipes, the statement said.