MESC inks deal to sell stake in Jordan unit

Middle East Specialized Cables Co. (MESC) has signed an agreement on Monday to sell a 29.1 percent stake, or 11.3 million shares, in Middle East Specialized Cables Company -Jordan (MESC-Jordan) for JOD 1.83 million (nearly SAR 9.70 million) based on the prevalent exchange rate.

The stake was sold to MESC-Jordan’s vice chairman Ahmad Adnan Al-Sallakh, the company added in a statement to Tadawul.

Accordingly, MESC’s holding in the Jordanian operations was reduced to 19.90 percent, or 7.73 million shares.

The sold shares will be pledged to the company based on Jordanian laws, until the deal value is fully paid for by the buyer.

MESC expects to reduce its share in the losses of subsidiaries and enhance its financial solvency under the deal, it said.

The financial impact will show in Q1-2016 figures upon completion of the deal, the cable producer added, noting that the sale proceeds will be used to repay debts to banks.