Saudi Cable sells Turkish subsidiary to China’s ZTT

Saudi Cable Co. (SCC) signed on July 12 an agreement to sell its wholly owned subsidiary in Turkey Demirer Kablo to China’s Jiangsu Zhongtian Technology Co. (ZTT) for SAR 250 million, SCC said in a statement today to Tadawul.

The deal is pending regulatory approvals in both Turkey and China, the statement said.

The plant is worth SAR 197 million and the deal has no significant conditions.

SCC aims to focus on Saudi-based core businesses and to improve its financial position.

Parties of this deal also include SCC’s subsidiaries Mass Cable, Mass Center Co., and SCC Marketing Company.

The deal’s financial impact is expected to show on SCC’s results in Q3 2018, the firm said, adding that the estimated returns amount to SAR 53 million before taxes.

Several Saudi companies that hold investments in Turkish firms could be impacted by the depreciation of the Turkish Lira against other foreign currencies, including SCC, Argaam reported yesterday.