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Arabia’s Al Arrab Did Not Inject Yet EUR35M In Romania’s Electroputere

Saudi Arabia's Al Arrab Contracting Co., majority shareholder of Romanian electrical equipment-producer Electroputere, did not inject EUR35 million into the company’s working capital, as previously announced by Romania’s privatization authority AVAS.
Arabia's Al Arrab Did Not Inject Yet EUR35M In Romania’s Electroputere
05 dec. 2007, 20:03, English

“The information that Al Arrab injected EUR35 million in the company’s working capital is incorrect and was caused by a communication error between the buyer and AVAS,” a press statement reads.

According to the privatization contract, Al-Arrab said it would inject EUR37 million in sixth months time after it takes over the company.

On November 6, Al-Arrab signed a EUR120 million deal with AVAS to buy a 62.8% stake in Electroputere, stipulating EUR37 million to be injected in working capital in six months from the purchase.

Two weeks ago, Al-Arrab paid EUR2.3 million for Electroputere majority stake.