Al-Babtain inks SAR 12.5 mln MoU to sell 49% of French subsidiary

Al-Babtain Power & Telecommunication Co. signed a binding memorandum of understanding (MoU) to sell 49% of Al-Babtain France to Portuguese Metalogalva.

Al-Babtain said on Wednesday in a statement to Tadawul that it has received a bid at a total value of €3 million (SAR 12.5 million) from Metalogalva to acquire 49% of Al-Babtain France, a wholly owned subsidiary of Al-Babtain Power.

The two parties agreed to finalize the deal within 2 months from the MoU signing date, after fulfillment of the required procedures.

Metalogalva owns a 40% stake in Al-Babtain Metalogalva Limited, a subsidiary of Al-Babtain Saudi Arabia.

The deal will not have a significant financial impact, Al-Babtain added, noting that the MoU is pending approval of the competent authorities in France. Also, Al-Babtain will review the regulatory requirements in the Kingdom.

Al-Babtain will deconsolidate Al-Babtain France starting from this year, the statement added.