As a development of its announcement posted on “Tadawul” on June 26, 2014, Saudi Arabian Amiantit Co. announces that, today 24th of September 2014, it obtained the confirmation that the sale of its 5.4975 % ownership in Chongqing Polycomp International Corp., (CPIC) , a China producer of Glassfiber established in Chongqing, China, for an amount of US$ 27,487,500 (Approx. SAR 103.1 million), to the majority shareholder Yuntianhua Group Co., Ltd, was approved by the various Chinese Authorities and Administration Offices involved.
These approvals are effectively closing the share transfer at the same time. The payment for the shares is scheduled by yearly installments, starting December 31, 2014 and ending on December 31, 2016.
As a result of this transaction, the Group will benefit from a capital gain and exchange profit of a total of approximately SR 21m. However, a possible SR 3m capital gain tax could apply. This matter is under review with the Chinese authorities and as a result, the Group will book a provision covering such exposure and recognize a net capital gain of SR 18m in September 2014.