Middle East Specialized Cables Co. (MESC) approved on Wednesday voluntary liquidation of its 57.5 percent-owned subsidiary in Jordan, MESC for Medium and High Voltage Cables.
Accordingly, a liquidator was appointed after obtaining regulatory and shareholder approval in Jordan, the company said in a statement to Tadawul.
Non-consolidating the Jordanian unit’s financial statements will reflect positively on Riyadh-based MESC’s earnings, allowing it to wipe out accumulated losses from the subsidiary, which stood at SAR 15.4 million in 2015 and SAR 12.5 million in 2016.
Meanwhile, the Jordan-based cable producer owes SAR 17 million in liabilities to the Saudi-listed company.
These dues, however, are subject to default risks, the statement added.
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