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Fiberweb sells 15% stake in SGN for US$7.28 mn
26 May '08
2 min read
Fiberweb plc is pleased to announce that it has completed the sale of its 15% interest in Saudi German Nonwoven Products Company ("SGN") to its fellow shareholders, Zamil Group Holding Company and Al-Rajhi House Enterprises for a cash consideration of US$7.28 million (c.GBP3.7 million).
Prior to completion of the transaction, Fiberweb also received a special dividend of US$1.72 million (c.GBP0.9 million).
The combined proceeds, net of an estimated US$1.36 million (c.GBP0.7 million) of associated tax, will be used to reduce Group debt.
SGN manufactures nonwoven materials predominantly for hygiene applications from its manufacturing site at Al-Khobar, Saudi Arabia.
Fiberweb's share of SGN's gross assets as at 31 December 2007 was Saudi Riyals 42.6million (c.GBP5.8 million) and Fiberweb's share of the pre-tax profit attributable to the business was Saudi Riyals 3.8 million (c.GBP0.5 million) for the year ended 31 December 2007.
The disposal will result in a post tax gain of approximately US$5.0 million (c.GBP2.5 million) in addition to the dividend received.
Commenting on the disposal, Fiberweb's CEO Daniel Dayan said:
"Fiberweb has enjoyed a long and successful relationship with its Saudi partners in the development of SGN.
However, as we review our portfolio and investment options, we are focusing our efforts on ventures where we have a significant interest or control.
The sale of our 15% interest in SGN is a positive step and, as with the proposed sale of Bidim, which we announced on 30 April 2008, is in line with our ongoing programme of business simplification and focus on core hygiene and speciality industrial businesses."
Prior to completion of the transaction, Fiberweb also received a special dividend of US$1.72 million (c.GBP0.9 million).
The combined proceeds, net of an estimated US$1.36 million (c.GBP0.7 million) of associated tax, will be used to reduce Group debt.
SGN manufactures nonwoven materials predominantly for hygiene applications from its manufacturing site at Al-Khobar, Saudi Arabia.
Fiberweb's share of SGN's gross assets as at 31 December 2007 was Saudi Riyals 42.6million (c.GBP5.8 million) and Fiberweb's share of the pre-tax profit attributable to the business was Saudi Riyals 3.8 million (c.GBP0.5 million) for the year ended 31 December 2007.
The disposal will result in a post tax gain of approximately US$5.0 million (c.GBP2.5 million) in addition to the dividend received.
Commenting on the disposal, Fiberweb's CEO Daniel Dayan said:
"Fiberweb has enjoyed a long and successful relationship with its Saudi partners in the development of SGN.
However, as we review our portfolio and investment options, we are focusing our efforts on ventures where we have a significant interest or control.
The sale of our 15% interest in SGN is a positive step and, as with the proposed sale of Bidim, which we announced on 30 April 2008, is in line with our ongoing programme of business simplification and focus on core hygiene and speciality industrial businesses."
Fiberweb plc
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