Electrical Industries Co. — Capital/Financing Update 2021

Apr 18, 2021

EIC announcement on the latest development with regard to purchasing the assets of CG Power Systems Belgium and establish a Ltd Co in Belgium

1303 · 18/04/2021 09:10:20 · Announcement #62865 · View on Saudi Exchange

EIC announcement on the latest development with regard to purchasing the assets of CG Power Systems Belgium and establish a Ltd Co in Belgium

Element List

Explanation

Introduction

Ref to the Co. announcement posted on Tadauwl on 24 August 2020 with regard to the board of directors' resolution to enter into negotiation with the Liquidator in Belgium to conclude Assets purchase Agreement of CG Power Belgium (under Liquidation), EIC would like to announce to its shareholders that on Thursday evening 15/4/2021, the Co has signed Assets Purchase Agreement with the Liquidator in Belgium with total amount of Euro (5,044,516) equal to SR (22,700,322).

It worth to mention that the Assets include machinery, equipment, inventory, software for designing transformers and mobile substation, knowhow and technical design. The deal will be funded from the Company's own resources and from the available facilities with banks.

Also, the Company would like to announce, it is in the final process of establishing “PAUWELS Transformers Co.” in Belgium and the Assets purchased will be transferred to the new Co, to start operating the Transformers factory in Belgium.

The Co is expecting that the financial impact will be reflected on the company's results during 2022. Previous Announcement Electrical Industries Co. Announcement on its board resolutions to enter into negotiation to conclude Purchase Assets Agreement of CG Power Belgium Company (under liquidation) and establish a Limited Liability Co in Belgium Date of Previous Announcement on Tadawul's Website 2020-08-24 Corresponding to 1442-01-05 Percentage of fulfilled achievement 100 Event's Expected Completion Date Not applicable Reasons for Exceeding the Announced End Date Not applicable The costs associated with the event, and if they have changed or not with indication of the reasons. Not applicable Impact of the Delay on the Company's Financial Results Not applicable Additional Information Its note to mention that the deal does not include any related parties

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.