Bawan completes subsidiary stake sale in Utec Algeria, results in SAR 2.1 mln loss

Logo of Bawan Co

Bawan Co. announced completing all legal procedures related to selling the full stake of its 85.5%- owned subsidiary, United Transformers Electric Co. Ltd. (Utec Saudi), in Utec Algeria for approximately SAR 30 million.

The ownership of the shares has been transferred and the sale amount has been received after amending the deal’s value to $7.1 million (SAR 26.6 million), the company said in a bourse statement.

The value of the transaction was amended mainly due to the difference in the audited balances with the company's internal balances, the statement added.

The effective date was also amended to Jan. 1, 2021 instead of Dec. 31, 2020.

The deal will result in a loss of SAR 2.1 million after offsetting a foreign currency translation balance of SAR 2.17 million.

In January, Bawan’s subsidiary, Utec Saudi, signed a contract with Algeria-based Industry Technology Electric Co. to sell its entire 49% equity stake in Utec Algeria for $8 million (SAR 30 million), according to data compiled by Argaam.