Riyadh-Mubasher: Al-Babtain Power and Telecommunication said it obtained the approval of France’s official authorities to restructure Al Babtain France.
The parent will combine the subsidiary’s financial statements with its financials starting from the first quarter of 2015.
Jawad Shehadeh, general manager of Al-Babtain Power, told Mubasher that the subsidiary restructure was due to the high cost of products and failure to compete outside of France.
The parent undertook a thorough study on restructuring the subsidiary’s financial and administrative positions to help it move on the right track, Shehadeh added.
He noted that the total number of Al Babtain France’s employees reaching nearly 450 will be cut by 40%.
Mohammed Al-Toukhi, Al-Babtain’s chief financial officer, ascribed the expected 15% profit growth in 2015 to combining the financial statements starting from Q1-15.
He forecasted that Al-Babtain France will contribute SAR 125 million to earnings, and the Saudi firm will add the same value.
