ARTEX sells subsidiary building for SAR 41.3M, expects SAR 38.7M in returns, cash flows

Logo of ARTEX Industrial Investment Co.

ARTEX Industrial Investment Co. signed a contract to sell a building belonging to one of its subsidiaries, National Spinning Co., the disposal of which will not affect the operational business of Lamina Co. Ltd., for SAR 41.31 million, excluding fees and taxes, if any.

Consequently, the company decided on the assignment of the leased land on which the building is located, as part of its planned strategy, according to a Tadawul filing today, July 23.

The asset’s book value reached SAR 592,260. No preferential terms or conditions were granted under the sale deal, it highlighted.

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The transaction is expected to have a positive impact, represented in achieving returns and cash flows of SAR 38.7 million.

The move came in implementation of ARTEX’s strategic plan, which aims to generate returns through the optimal utilization of untapped assets.

Based on the company’s income statements for the last three years, the asset’s book value amounted to SAR 883,535 in 2022, SAR 767,024 in 2023, and SAR 650,515 in 2024.

On May 7, ARTEX inked a binding agreement worth SAR 41.31 million with Lamina Co. Ltd. to waive the lease contract of a land plot belonging to the Saudi Authority for Industrial Cities and Technology (MODON) in the Riyadh Second Industrial City, which was formerly used as a spinning factory site, Argaam’s data showed.