Electrical Industries inks MoU to buy CG Power’s stake in Saudi Transformers Co.

Electrical Industries Co. (EIC) has signed a memorandum of understanding (MoU) with CG Power Systems-Belgium to buy its 49 percent stake in The Saudi Transformers Co. Ltd., EIC said in a statement to the Saudi bourse Thursday.

EIC already owns a 51 percent stake in Saudi Transformers, and will become its sole owner after the acquisition, which is expected to be completed by the end of Q1 this year, the statement added.

Financial impact of the deal will show starting Q2-2017 and CG Power Systems will continue to provide technical support for Saudi Transformers for 10 years, based on the MoU. 

Dammam-based Saudi Transformers Co. Ltd makes distribution transformers, package substations, and unit-substations, apart from standard products. It is an approved supplier for Saudi Electricity Company and Saudi Aramco, and has previously supplied transformers and substations to Dubai Electricity and Water Authority (DEWA), Ministry of Electricity and Water in Kuwait, and Electricity and Water Authority in Bahrain.