CG Belgium announcement on successful bid could be eminent
Belgium: An announcement on the successful bidder and new owner of CG Belgium could be eminent.
The liquidators are in final discussions with the preferred bid candidate.
In terms of the Belgium liquidation process, the preferred bids had to be submitted to the relevant creditor banks for approval. It is understood that the banks have completed their initial review process.
The outcome of these final discussions on the Belgium entities could lead to an announcement on the new owner for the CG Power Systems and CG Holdings business entities.
The successful bidder and new owner of CG Ireland was announced earlier this month.
It is understood that the preferred bid candidate could most likely be the Saudi Arabian based EIC. The Belgium and Dutch entities who submitted earlier bids would no longer appear to be in contention.
EIC, based In Daman, Saudi Arabia is a stock exchange listed company and the owner of SPTC, among others. Saudi Pauwels Transformer Company had been the joint venture partner vehicle of EIC and CG Power Systems in the Middle East. SPTC and CG use similar design and construction software platforms.
It is not certain if the ownership of the Belgium entities would be subject to approval by either the Belgium or Flemish government if the discussion proves successful.
Recent events in Portugal with EFACEC and CG Hungary (Ganz) saw the rise of what could best be described as a new trend where the national governments not only recognised the national importance and value of their transformer manufacturers but also implemented measures to influence and safeguard ownership.
Author: Chris Gerber
*The opinions expressed in this article are those of the author and they do not necessarily reflect the opinions or views of the Transformers Magazine and Merit Media Int.