Amiantit inks deal with SNB to settle due facilities worth SAR 313M

Logo of Saudi Arabian Amiantit Co.

Saudi Arabian Amiantit Co. signed an agreement today, Feb. 15, 2024, to settle all due facilities to Saudi National Bank (SNB), amounting to SAR 313 million, with a 50% discount.

As per the agreement, the bank will receive a payment of SAR 156.5 million, and the company will be relieved of the remaining SAR 156.5 million, Amiantit said in a statement to Tadawul.

The settlement is conditional upon the cash flows of the proceeds generated from the company’s capital increase via a rights issue, which is subject to the approval of the extraordinary general meeting (EGM), scheduled for Feb. 20, 2024, the company added.

The relevant financial impact will be an accounting profit of SAR 156.5 million with no expected cash inflows from this deal, according to the statement.

Amiantit announced earlier today that it was relieved of all obligations to Alinma Bank totaling SAR 572.7 million.

Thus, the relevant financial impact of the settlement agreements with both banks is an accounting profit of SAR 639 million, with no cash inflows, while increasing shareholder’s equity by SAR 639 million.

The company settled around 77% of its total liabilities and now owes only SAR 268 million to Bank Albilad, which has been rescheduled for 10 years, as previously disclosed.

Amiantit completed today the paperwork required for transferring the ownership of its subsidiary to Alinma Bank's investment fund. In return, it was relieved of all obligations towards Alinma Bank, amounting to SAR 572.7 million. These obligations constitute about 50% of Amiantit’s total obligations owed to banks.

Amiantit’s shareholders will vote on increasing capital through a SAR 346.5 million rights offering during the EGM slated for Feb. 20, Argaam reported.

A trading halt was placed on Amiantit shares today, from 11.30 a.m. until 1.30 p.m., due to the disclosure of a material event, according to Tadawul. Before trading suspension, the stock rose 4% to SAR 74.40, as nearly 500,000 shares changed hands.