RAK Ceramics to sell stake in RAK Laticrete

RAK Ceramics, one of world's biggest makers of ceramic tiles and sanitary ware, plans to sell its stake in RAK Laticrete as part of the company's strategy to focus on core assets, the Ras Al-Khaimah-based firm said on Sunday.
RAK Laticrete, a joint venture between RAK Ceramics and Laticrete International, manufactures tile installation systems and waterproofing products for distribution throughout the Middle East and Africa.
"The preliminary sales agreement announced today is in line with our strategy to streamline operations and focus on our core activities of tile, sanitary ware, faucet and tableware production," Abdallah Massaad, the firm's chief executive said in a statement. "The terms of the agreement are in line with our business strategy of consolidation and the transfer of the asset makes extremely good financial sense. RAK Ceramics received a significant premium to our book value and to the initial cost of RAK Laticrete."
The firm didn't disclose the size of the stake, its value or the buyers.
The Abu Dhabi-listed firm is in the process of selling its Sudan business and its stake in the pharmaceutical company RAK Pharma in Bangladesh as part of efforts to focus on ceramic tiles, sanitary ware, tableware and faucets. The firm expects to receive more than US$50 million from the sale of these two assets, the chief executive said last month.
RAK Ceramics said profit fell 15 per cent in the third quarter because of hyperinflation accounting in Sudan and Iran.
RAK Ceramics shares closed up 0.33 per cent to Dh3.01 in Abu Dhabi.
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