Saudi Steel Pipe Company announce a material event with regard to the land plots owned by the company in Dammam City
|Announcement Detail||Saudi Steel Pipes announces that it has recently learned of the purported cancellation of its electronic title deeds to certain land plots. The affected land plots, with a total surface of 811,284 square meters, are located in Dammam and were purchased from a private entity on February 13th, 2010, pursuant to a written purchase agreement duly executed by the Company in full compliance with the laws of the Kingdom of Saudi Arabia. The transaction was announced to the market on February 14th, 2010. Although the acquisition was aimed at the establishment of a pipe coating plant and the construction of the Company’s headquarters, following a subsequent change in the Company’s expansion projects, the pipe coating plant was established in the main company’s factory and the land plots, which were not subject to any building obligation, have been partially used as a warehouse. The affected plots are not part of the production facility of the Company. |
The affected land plots have a carrying value on the Company’s financial statements of SAR 157.9 Mill, which exceeds 5% of the Company’s net assets. The Company has not received any notification on the purported cancellation of title deeds, and as of the date hereof the legal basis for the purported cancellation is still unknown to Company. SSP is currently assessing the effects of the purported cancellation, its legal basis and the available alternatives to protect its assets. Company expects to duly update the status on the matter once any definitive decision is received.
The Capital Market Authority and the Saudi Stock 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.