SUBSEQUENT EVENTS |
9 Months Ended |
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Sep. 30, 2019 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS |
SUBSEQUENT EVENTS
Pursuant to a Share Sale and Purchase Agreement (the “Purchase Agreement”) that was effective as of October 2, 2019, the Company has agreed to sell its entire 33.3% equity interest in AMAK, to AMAK and certain other existing shareholders of AMAK (collectively, the “Purchasers”) for an aggregate gross purchase price (before taxes and transaction expenses) of SAR 264.7 million (or approximately US$70 million), which will be payable in US Dollars. The Purchasers have advanced 5% of the purchase price (or approximately $3.5 million) in the form of a non-refundable deposit, which was a condition to the effectiveness of the Purchase Agreement. As of September 30, 2019, deposits of approximately $2.2 million were received and recorded as a reduction in our investment in AMAK. The remainder of the deposits (approximately $1.3 million) were received subsequent to September 30, 2019.
The Purchase Agreement contains various representations, warranties and indemnity obligations of the Company and the Purchasers, including the release of the Company's guarantee as described in Note 18. The Purchase Agreement also contains certain termination rights of the Company, including if closing does not occur by November 25, 2019. The transaction is expected to close in the fourth quarter of 2019, subject to receipt of certain governmental approvals and other customary closing conditions.
On October 29, 2019 the Company experienced a severe weather event at the Specialty Petrochemicals facility in Silsbee, Texas, resulting in a plant shutdown and significant damage to one of the feedstock tanks. The plant returned to operation November 7, 2019. The Company is determining the financial impact of recovery costs and expects some loss of sales volumes.
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