Astra Group discloses losses in steel factory in Iraq

Accumulated losses of more than 100% of the capital

  
Riyadh – Mubasher: Astra Industrial Group said that its investment in a joint project with Al Tanmiya for Steel in Iraq resulted in accumulated losses of more than 100% of the capital, which stood at SAR 172.5 million.

The project’s accumulated losses amounted to nearly SAR 1.375 billion by the end of 2019, as per the company’s statement to the Saudi Stock Exchange (Tadawul) on Wednesday.

Accordingly, Al Tanmiya extraordinary general assembly meeting decided to offset losses through loans and partner current account, the statement disclosed, noting that the group’s share in the account amounted to SAR 812.2 million, while Al Masirah International, which is a related part, has SAR 376 million.

The remaining accumulated losses will be offset through a capital reduction from SAR 172.5 million to SAR 28 million, this is set to increase Astra’s stake from 51% to 65%, while Al Masirah’s stake will increase from 16% to 28%.

Source: Mubasher

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