Bawan Company announces the signing of its subsidiary (Bawan Engineering Industries Company or “Bawan Engineering”) an agreement to purchase additional shares in both United Transformers Electric Company and United Technology of Electric Substations & Switchgears Company for a total value of (20,000,000) Saudi riyals

Bawan Company announces the signing of its subsidiary (Bawan Engineering Industries Company or “Bawan Engineering”) an agreement to purchase additional shares in both United Transformers Electric Company and United Technology of Electric Substations & Switchgears Company for a total value of (20,000,000) Saudi riyals



Element List

Explanation

Introduction

Bawan Company announces that its subsidiary, Bawan Engineering Industries Company, has signed an agreement to purchase the entire ownership shares of Maali Holding Company in United Transformers Electric Company and United Technology of Electric Substations & Switchgears Company (“the two companies”) for a total value of (20,000,000) Saudi riyals

Transaction Details

The purchase by Bawan Engineering, the entire shares of Maali Holding Company in the two companies, which represents 4.5% of the total ownership shares in each of the two companies, including its assets and liabilities, for a total value of (20,000,000) twenty million Saudi riyals. Therefore, Bawan Engineering ownership in the two companies reaches 90%. The parties agreed that the shares would be sold based on the balances of the two companies’ audited financial statements as of 12/31/2023 AD, and that the approved effective date for the purchase transaction for accounting purposes would be 01/01/2024 AD. The full purchase price will be paid after the General Assembly of Bawan Company approves the purchase transaction and after the completion of the transfer of ownership of all shares to Bawan Engineering.