Trecora Resources Receives Additional Proceeds For Partial AMAK Share Sale

Trecora Resources (TREC) announced the completion of a share sale in Al Masane Al Kobra Mining Co. (AMAK) on August 14, 2020.

Rhea-AI Summary

Trecora Resources (TREC) announced the completion of a share sale in Al Masane Al Kobra Mining Co. (AMAK) on August 14, 2020. The company sold approximately 5.8 million shares, receiving $12.9 million, after accounting for a $2.1 million withholding for capital gains taxes in Saudi Arabia. Following this transaction, Trecora's ownership in AMAK decreased from 27.0% to 21.3%. Trecora specializes in high purity hydrocarbons and wax production at its Texas facilities.

Positive

• Completion of share sale in AMAK, realizing $12.9 million.
• Reduction of capital gains tax liabilities through buyer withholding.

Negative

• Ownership in AMAK decreased from 27.0% to 21.3%, signaling diminished influence.

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SUGAR LAND, Texas, Aug. 17, 2020 /PRNewswire/ -- Trecora Resources ("Trecora" or the "Company") (NYSE: TREC), a leading provider of specialty hydrocarbons and specialty waxes, today provided an update on the previously announced sale of its shares in Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company ("AMAK").

On August 14, 2020, Trecora completed the sale of approximately 5.8 million shares of Trecora's overall ownership in AMAK to two of the purchasers, for which the Company received remaining payments from these purchasers of approximately $12.9 million. These payments reflect a withholding by one of these purchasers of approximately $2.1 million for the estimated aggregate capital gains taxes payable in the Kingdom of Saudi Arabia for all shares of AMAK sold by Trecora to all of the purchasers, and which will be paid by such purchaser on the Company's behalf as an administrative accommodation.

Following this transaction, Trecora's ownership percentage in AMAK has been reduced from 27.0% to 21.3%.

About Trecora Resources (TREC)
TREC owns and operates a specialty petrochemicals facility specializing in high purity hydrocarbons and other petrochemical manufacturing and a specialty wax facility, both located in Texas, and provides custom processing services at both facilities. In addition, the Company is the original developer and currently a 21.3% owner of AMAK.

Investor Relations Contact:  
Jason Finkelstein 
The Piacente Group, Inc. 
212-481-2050 
trecora@tpg-ir.com

 

 

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SOURCE Trecora Resources

FAQ

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What did Trecora Resources announce on August 14, 2020?

Trecora Resources announced the completion of a share sale in Al Masane Al Kobra Mining Co.

How much did Trecora receive from the sale of its AMAK shares?

Trecora received approximately $12.9 million from the sale.

What impact did the share sale have on Trecora's ownership in AMAK?

Trecora's ownership in AMAK decreased from 27.0% to 21.3%.

What was withheld for capital gains taxes in the AMAK share sale?

$2.1 million was withheld for estimated capital gains taxes in Saudi Arabia.

What industries does Trecora Resources operate in?

Trecora operates in specialty hydrocarbons and specialty wax manufacturing.