Electrical Industries inks deal to fully acquire Saudi Transformers Co.

13/04/2017 Argaam

Electrical Industries Co. (EIC) signed on Wednesday a binding offer with CG Power Systems-Belgium to buy its 49 percent stake in Saudi Transformers Co. Ltd., EIC said in a statement to the Saudi bourse Thursday.

 

EIC will offer SAR 1 per share to acquire that stake, raising its holding in the transformers manufacturer to 100 percent.

 

The stake purchase will be financed from EIC’s internal resources and is driven by growing demand for transformers.

 

EIC added that it expects Saudi Transformers Co. to gradually cut losses by end of this year and to swing to profit in 2018.

 

No related parties are involved in the deal, according to the statement.

 

In January, EIC had inked a memorandum of understanding with the Belgian firm to buy its 49 percent stake in the transformers producer.

 

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