Aamal Announces the Results of Its Board of Directors Meeting                                              

 

April 03, 2017

 

 Aamal Company has announced the results of its Board of Directors meeting held on 1/4/2017. The Board adopted the following resolutions:

 1. Amend the partnership agreement with the partner in Senyar Industries Qatar Holding WLL.

Aamal Company owns 50% of the total shares of Senyar Industries Qatar Holding.  

In line with the expansion plan to be implemented by the company during the coming period by entering into and establishing new industrial projects and in order to improve the daily work of the company and run more flexibility and considerations of raising the efficiency of work and maximize the benefit of the technical expertise of the partner. The Board of Directors has approved the amendment of the partnership agreement with the partner in Senyar Industries Qatar Holding, so that the control of the financial and operating policies of this company is joint control among the partners rather than under the control of Aamal Company (in accordance with the previous agreement).

Note that this Agreement is effective on 1 April 2017.

2. Amending the partnership agreement with the partner in Advanced Pipes and Casts Company W.L.L.

Aamal owns50% of the total shares of Advanced Pipe and Casts Company.

In line with the expansion plan to be implemented by the company during the coming period by entering into and establishing new industrial projects and in order to improve the daily work of the company and run more flexibility and considerations of raising the efficiency of work and maximize the benefit of the technical expertise of the partner. The Board of Directors has approved the amendment of the partnership Agreement with the partner in the Advanced Pipeline and Cast Company, so that the control of the financial and operating policies of this company is joint control among the partners rather than under the control of Aamal Company (in accordance with the previous agreement).

Note that this Agreement is effective on 1 April 2017.

 

3. In implementation of the above two agreements, Aamal Company will present both Senyar Industries Qatar Holding WLL and Advanced Pipes and Casts Company WLL as part of the joint ventures of the Company and not as subsidiaries.

 

In accordance with paragraph B82 of IFRS # 10, the Company also discontinues the consolidation of the financial statements of these two companies in the consolidated financial statements of Aamal Company effective 1 April 2017 and will then be presented as equity-accounted investees using the equity method in accordance with IFRS 11.

We would also like to emphasize that these two agreements will have no effect on the shares owned by Aamal in these companies or on the dividends or the distribution method among the partners at all. Accordingly, the equity attributable to the equity holders of the parent company, as well as profit attributable to the equity holders of the parent company and the basic and diluted earnings per share will not be affected by these agreements. Nevertheless, the total assets and liabilities will be affected by this change in accounting method. Derecognizing these two companies as subsidiaries and recognizing the mas equity-accounted investees using the equity method at fair value on this date might result in gain or loss as a result of the difference between the fair value and the book value of these companies. The fair value for these two companies will be measured at the earliest possible time and any gain or loss will be recognized in the next published financial statements for Aamal Company.

 

4.Liquidation of Johnson Controls Qatar WLL.

Johnson Controls Qatar Limited is a limited liability company with a capital of QR2,000,000 and a total equity of QR 1,276,166 according to the latest audited financial statements of the Company. Aamal holds 51% of the company's total shares.

 

The partner of Johnson Controls Qatar has submitted to the Board of Directors of Aamal Company a proposal to liquidate and dissolve the company. This demand was based on the company's successive losses in previous years as well as the lack of viable projects at the moment and the absence of a future business plan that would support the continued operation of the company.

 After reviewing this proposal, the Board approved the proposal to dissolve and liquidate Johnson Controls Qatar WLL in accordance with the provisions of the Companies Law and the Company's Memorandum of Association. This matter shall be coordinated with the Partner in order to convene an Extraordinary General Assembly to agree on details and next procedures.

5.Discussion of the proposed liquidation of Aamal Optical Supplies WLL.

Aamal Optical Supply is a limited liability company with a capital of QR 1,000,000 and a total equity of QR 973,874 according to the latest audited financial statements of the Company. Aamal holds 51% of the company's total shares.

 Since its establishment in September 2014, the company has not undertaken any business or activity, which led the partners to submit to Aamal a proposal to liquidate the company.

 The Board directed the executive Management of Aamal Company to study the feasibility of this proposal and then make the necessary recommendations in this regard, whether there is a useful benefit from the continuity of the company or not.