Saudi Cable takes stake in Turkish firm
Riyadh, August 2, 2009
Saudi Cable Co said on Sunday it has agreed to buy a 79-percent stake in Turkish electronic equipments maker Elimsan for 123.75 million riyals ($33 million).
"Elimsan's takeover ... is among strategic steps taken by the (Saudi Cable) company to consolidate and diversify its products, which will enable it to cover promising markets in the Gulf Arab region," Saudi Cable said in a statement.
Two unidentified banks will finance about 91 percent of the deal's cost over a five-year period and the remainder will be funded from Saudi Cable's own cash, it added.
Elimsan mainly specialises in the production of electrical switchgears, gas circuit breakers, metal enclosed switchgears and high voltage disconnectors.
Saudi Cable, a power and telecom network equipment maker, said Elimsan generates annual sales of 500 million riyals.
In 2008, Saudi Cable had revenue of 3.5 billion riyals and a net profit of 212.1 million riyals. - Reuters