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Advanced Building Industries Co. — M&A Activity 2010
Sep 21, 2010
53315_rns_2010-09-21_2011ebd0-b2d6-4db8-8acd-14bbbf25877e.html
M&A Activity
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ZAMIL INDUSTRIAL ANNOUNCES THE SIGNING OF A MERGER TERM SHEET WITH GULF INSULATION GROUP TO MERGE SELECT INSULATION BUSINESSES
2240 · 21/09/2010 15:54:43 · Announcement #19079 · View on Saudi Exchange
ZAMIL INDUSTRIAL ANNOUNCES THE SIGNING OF A MERGER TERM SHEET WITH GULF INSULATION GROUP TO MERGE SELECT INSULATION BUSINESSES
Further to Zamil Industrial Investment Company (Zamil Industrial) announcement on 22 February 2010 where the Board approved establishing a new factory to manufacture Stonewool insulation products with a total investment of SAR 300 million, Gulf Insulation Group (GIG) and Zamil Industrial discussed the possible merger of select insulation businesses in a new company which will provide greater market potential.
Consequently, Zamil Industrial and GIG have explored the respective insulation businesses and agreed on an Indicative Term Sheet that was signed on 20/09/2010 to consider a possible merger of the select insulation businesses over the next few months. A due diligence exercise will be conducted by both parties during the same period.
Should the merger take place, the revenue of this merged company is expected to be in the range of SAR 800 million (USD 213.3 Million) in 2011. Zamil Industrial will be the managing partner with a 51 percent controlling stake.
A further announcement on the developments will be released in due course.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.