Riyadh – Mubasher: Saudi Arabian Amiantit Company has signed an agreement with Saudi National Bank (SNB) to settle a SAR 313 million debt.
Under the agreement, Amiantit will pay only 50% of the debt, or SAR 156.5 million, by the cash inflows from proceeds of the capital increase through a rights issue, according to a bourse filing.
The capital increase is subject to the approval of the extraordinary general assembly meeting (EGM), which is scheduled to be held on 20 February 2024.
Debt to Alinma Bank
On 14 February, Amiantit announced the completion of the procedures of transferring the ownership of the company's entire stake in the International Infrastructure Management and Operation Company Ltd, a wholly-owned subsidiary, to Alinma Bank's investment fund.
The deal included settling SAR 572.7 million of Amiantit’s debt to the fund, which constitutes about 50% of the company’s total obligations due to banks.
Amiantit noted that the total financial impact of the two above-mentioned transactions is to record an accounting profit of SAR 639 million, adding that it will not result in any expected cash in-flow within the company.
The Tadawul-listed company announced that the two transactions would entail the settlement of approximately 77% of its total bank obligations, and the remaining debt would only include an amount of SAR 268 million owed to Bank Albilad and be rescheduled for ten years.
In September, Amiantit unveiled a plan to increase capital by SAR 346.50 million through offering rights issues.
Following the Capital Market Authority's (CMA) approval of the capital hike in December 2022, Wasatah Capital Company was selected as the financial advisor for the offering.
