Riyadh – Mubasher: Electrical Industries Company (EIC) announced signing a memorandum of understanding (MoU) with CG Power Systems Belgium NV, the foreign partner in EIC's subsidiary Saudi Transformers Co.
Under the deal signed on Wednesday, EIC will buy the Belgian company's 49% stake in the transformers company, according to a filing to the Saudi Stock Exchange (Tadawul).
EIC currently owns 51% of Saudi Transformers Co., and following the agreement and the completion of the acquisition, the transformers company will become a wholly-owned subsidiary of EIC.
The Tadawul-listed company said it expects the acquisition to be finalised before the end of the first quarter of 2017, according to the statement released Thursday.
The financial impact of the deal will appear in the EIC's financial statements starting the second quarter of 2017.
The Belgian company will continue to provide technical support for Saudi Transformers for a 10-year period, EIC noted.
