Dr. Waheeb A. Linjawi, Group President and Managing Director of Saudi Cable Company is now pleased to announce that it has exercised its option of acquiring a 79% controlling interest in the Turkey based ELIMSAN GROUP for SR 123.75 Million ( USD 33 Million) with the previous shareholders retaining the balance of 21 % . The acquisition has been financed by a SR 112.5 Million loan from two (2) banks payable over 5 years with the remaining amount from the companys own resources.
This is pursuant to his announcement of 16 August 2008 in the Tadawul Website , when Saudi Cable Group through its fully owned subsidiary Mass Cable Company, Turkey, had extended a loan (equivalent to the 79 % controlling interest) to ELIMSAN which was then secured by the companys land.
The transaction has been structured that the entire amount invested by Saudi Cable is utilized for the requirements of the company. The previous shareholders will be paid over a six year period through the surplus profits generated by Elimsan.
Elimsan a company that pioneered the Switchgear Technology has been established in 1980. Its majors products are Switchgears, Circuit breakers, and transformers. The products are currently being sold in Europe , Asia and the MENA region including GCC.
As mentioned in our earlier announcement related to this acquisition, ELIMSAN has a capacity of over SR 500 Million . The acquisition is one of the companys strategic initiatives which will enhance our capability to serve the promising markets in the GCC making Saudi Cable less reliant on highly commoditized products and focus on high-technology power related products which is expected to further enhance Saudi Cables profitability.
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