United Technology of Electric Substations and Switchgears Co. (USSG) signed today a conditional agreement to merge into United Transformers Electric Co. (Utec), the parent company Bawan said in a bourse statement.
USSG’s all assets and liabilities will be transferred to Utec in a merger deal worth SAR 17 million, representing the net book value of USSG’s assets according to its financial statements for fiscal year 2018, the statement said.
The merger’s value will be recorded to the current accounts of Utec’s partners.
The move aims at enhancing performance and reducing costs, since both companies have compatible business plans and activities, the firm said.
The deal, pending regulatory approvals, is expected to have a positive impact on Bawan’s financial results starting from Q4 2019, it said.
Further developments will be disclosed as they occur, it added.
Bawan Company indirectly owns an 85.5 percent stake in each firm through its wholly-owned subsidiary Bawan Engineering Industries, the statement said.
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