Bawan subsidiary buys additional shares in two companies for SAR 20 mln

Bawan Company announced on Monday that its subsidiary, Bawan Engineering Industries Company, has signed an agreement to purchase the entire ownership shares of Maali Holding Company in United Transformers Electric Company and United Technology of Electric Substations & Switchgears Company (“the two companies”) for a total value of (20,000,000) Saudi riyals

The parties agreed that the shares would be sold based on the balances of the two companies’ audited financial statements as of 12/31/2023 and that the approved effective date for the purchase transaction for accounting purposes would be 01/01/2024.

The Company indicated that the full purchase price will be paid after the General Assembly of Bawan Company approves the purchase transaction and after the completion of the transfer of ownership of all shares to Bawan Engineering.

The combined revenues and profits of the two companies in the last three years amounted to the following:

1- FY Year 2021:

Revenues: 448.9 million Saudi riyals.

Profits: 1.1 million Saudi riyals.

2- FY Year 2022:

Revenues: 608.6 million Saudi riyals.

Profits: 26.2 million Saudi riyals.

3- The 9 months of FY 2023:

Revenues: 533.8 million Saudi riyals.

Profits: 48.5 million Saudi riyals.