Bawan considers feasibility of subsidiaries' potential merger

Bawan Co. said it is currently considering the feasibility of a potential merger between its subsidiaries, United Technology of Electric Substations and Switchgears Co. (USSG), according to a bourse statement.

Bawan expects no relevant financial impact at present.

In June, both subsidiaries inked a conditional merger agreement, under which USSG’s all assets and liabilities will be transferred to Utec in a merger deal worth SAR 17 million, representing the net book value of USSG’s assets according to its financial statements for fiscal year 2018.

Bawan Company indirectly owns an 85.5% stake in each firm through its wholly-owned subsidiary Bawan Engineering Industries.