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Bawan Engineering Industries is buying out minority shareholders: The industrial outfit has signed an agreement that would see it increase its total ownership in United Transformers Electric and United Technology of Electric Substations & Switchgears to 90% in each, according to a disclosure on Tadawul. The shares purchase agreement is pending the final approval of parent company Bawan Company.
The details: Bawan has acquired the entire stake of Maali Holding in both companies for a total of SAR 20 mn. Prior to the transaction, Maali held a 4.5% stake in each of the sold companies.
KPIs from the subsidiaries: Their combined net profit rose 85% y-o-y to SAR 48.5 in 9M 2023, while their revenues declined 12.3% y-o-y to SAR 533.8 mn.
A peek into Bawan’s results- The industrial group saw its net profit fall 25% y-o-y to SAR 99.8 mn in 9M 2023 due to a decrease in sales for its metal, plastic and wood segments, according to a disclosure to Tadawul. This was also driven by an increase in borrowing costs and discontinued operations in its concrete business. Revenues remained basically unchanged, falling 0.5% y-o-y to SAR 2.5 bn over the same period.
