Tihama Advertising and Public Relations Co.’s board of directors has approved an offer by Fahd Medyan, the company’s partner in Ad Art Medyan Signs Co., to acquire its 75 percent stake in Ad Art for SAR 4 million.
The amount will be paid in three installments and will go towards financing the company’s future activities, Tihama said in a statement on Tadawul.
Ad Art, which produces signboards and neon boards, has been incurring losses since 2014. It reported a net loss of SAR 4.3 million in the fiscal year 2014 followed by losses of SAR 16.7 million and SAR 11.5 million in the fiscal years 2015 and 2016 respectively.
Tihama will realize a capital gain of SAR 1.07 million on the deal after deducting assets’ book value of SAR 2.93 million, the statement added.
The financial impact of the sale will be reflected in the second quarter of the fiscal year ending March 31, 2018.
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