Saudi Steel Pipe Co.’s (SSP) board of directors approved on Wednesday converting a SAR 43.75 million loan, which was secured by its associate Global Pipe Co. (GPC) into an equity through raising the capital of GPC, the company said in a statement.
The steel pipe manufacturer will double GPC’s capital to SAR 250 million and convert it into a closed joint stock company.
SSP will maintain its 35 percent stake in the company, while its equity in the associate’s capital will be raised to SAR 87.5 million from SAR 43.75 million.
The associate had secured the loan in two tranches in 2012 and 2015, the statement added.
GPC is a Saudi – German joint venture limited liability company with a total investment of SAR 660 million.
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