ZAMIL INDUSTRIAL RESTRUCTURES ITS MAIN SECTORS

Further to the Zamil Industrial Investment Company Zamil Industrial Board announcement on Tadawul dated 17/08/2010 on the restructuring of its main sector businesses and the Boards inclination towards updating its shareholders and public on the recent developments, Zamil Industrial Board announces the completion of formation of Zamil Steel Holding Company Limited and is now the rightful owner of all steel sector companies. On the other the hand, the formation of Zamil Air Conditioners Holding Company Limited is currently in progress. 

It is worth noting that in order to fulfill certain requirements for establishing the AC sector holding; the management of the company has, based on an extensive study prepared by an independent international consultant stated in the abovementioned announcement, has entered into a binding agreement dated 31/12/2012 with the JV partners to increase Zamil Industrial ownership in Advantec Coils Private Ltd. (ACPL), India, from 30 percent to 100 percent. Zamil Industrial have agreed to pay the JV partners approximately SAR 7 million to buyout their remaining shareholding in ACPL. The transaction will have an impact on its financials in Q4 2012 and is likely to be consummated in the next few months post which Zamil Industrial would become the legal owner of ACPL. 

The companys decision to increase its shareholding is its intention to acquire the entire shares of ACPL which is in line with the strategic plan of the AC sector in horizontal as well as vertical expansion in local and regional markets. 

The increase in shareholding of ACPL is also driven by promising demand in the Indian subcontinent, which is one of the largest and fastest growing economies and this could also feed into Zamil Industrial to be positioned as a leading building solution provider with a combined offering of steel and HVAC solutions.