Saudi Arabian Amiantit Co announces that, on evening of June 25, 2014, the Group signed a Share Transfer Agreement for 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.
The agreement has been submitted to the related approving authorities of China and is expected to be approved by such authorities in the coming weeks.
If approved, the sale will generate a net capital gain and foreign exchange profit of approximately SAR 21.0 million over the year 2014.
Saudi Arabian Amiantit Co had decided to put its shares in CPIC for sale in December 2013 (as per the announcement published on the same date on Tadawul on 4-12-2013) and explained the decision by the willingness to create additional liquidities and value for the shareholders of the group, as there is a growing demand on the market for such investments from international investors.