‎Astra subsidiary signs agreement to exit investment in Iraqi unit for SAR 731.2 mln

‎Astra subsidiary signs agreement to exit investment in Iraqi unit for SAR 731.2 mln

Astra Industrial Group announced that its 65%-owned subsidiary Al Tanmiya for Steel Industries signed, on Feb. 7, a conditional agreement with Alghad Almutkamel for General Trading, Iron and Steel Metallic Industries to exit its investment in the 100%-owned Al Anmaa Co. for Constructional Material Production Ltd., which owns steel and power plants in Iraq.

In a bourse statement, the company added that the ownership and management of Al Anmaa will remain with Al Tanmiya until the conclusion of the transaction and fulfillment of relevant conditions.

The transaction’s terms include obtaining all regulatory approvals in Iraq to conclude the deal, settlement of Al Tanmiya loans to Al Anmaa, receipt of proceeds from the sale of Al Anmaa shares by Al Tanmiya, registration by the regulatory agency of the shares in the name of the buyer. In addition, the buyer should secure the needed funding from Iraqi banks.

The book value of Al Tanmiya’s investment in Al Anmaa is negative $11.6 million (negative SAR 43.5 million). In addition, Al Tanmiya has outstanding loans of $134.6 million (SAR 504.7million) to Al Anmaa.

The amounts indicated in this clause are based on unaudited accounts of Al Tanmiya as of Dec. 31, 2021.

Al Anmaa’s financials for the past three