| 16 Sep 2008 |
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Leading Private Equity Firm HBG Acquires Strategic Stake in Muscat Finance Company
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Dubai, 16th September 2008 - HBG Holdings ("HBG")HBG Holdings ("HBG")
, a leading Jeddah and Dubai based investment firm specializing in private equity and real estate investments, today announced its acquisition of a strategic stake in Muscat Finance Company (MFC)Muscat Finance Company (MFC), a public joint stock company listed on the Muscat Stock Market. HBGHBG, whose stakeholders include NCB CapitalNCB Capital, a subsidiary of the National Commercial Bank of Saudi Arabia, has acquired 9 million shares or 10% of MFCMFC, worth approximately USD 9.7 million. The shares were acquired in strategic blocks from existing shareholders.
This acquisition makes HBGHBG one of the largest shareholders in MFCMFC.
Commenting on the deal, Abdallah Y. Al-Mouallimi, Chairman of the Board of Directors of HBG HoldingsHBG Holdings said, "We are very pleased to have acquired a strategic stake in this leading financial institution that has historically dominated the non-banking finance sector. With the Oman non-banking finance sector having grown to USD 1.3 billion and continuing to grow at more than 50% per year, we look forward to working with all stakeholders to realize the company's immense market potential. We view this transaction as a long-term investment for HBGHBG which demonstrates our confidence in Oman and the Middle East economy."
Mr. Al-Mouallimi added, "We have identified the financial sector as a key area of focus for our investment activities and intend to increase our allocation in this sector across the region and particularly in Saudi Arabia."
The Board of Directors of MFCMFC has already met and approved the nomination of Zulfi Hydari, Managing Director of HBG HoldingsHBG Holdings, to the Board of Directors and the Executive Committee.
Mr. Hydari said, "I thank the Board for showing confidence in HBGHBG
as a strategic shareholder and giving me the opportunity to actively participate as Board Director and Executive Committee Member. The non-banking finance segment is set for significant growth across the region and MFCMFC is undeniably one of the strongest platforms around, having served more than 80,000 customers and made cumulative disbursements of approximately $1 billion."Mr. Hydari added, "Oman is a growing investment destination which is home to a diverse business community with domestic and regional ambitions. Likewise, there will be a strong drive towards future consolidation as the regulatory authorities have recently announced a major increase in the minimum capital requirement of Non-Banking Finance Companies. In time, we hope to partner with leading local business groups as they expand beyond the domestic market."
HBGHBG intends to invest over $2 billion in its current investment cycle and is evaluating a number of transactions in the region. HBGHBG will also increase its exposure to the financial services sector.
-Ends-
(HBGHBG) is a leading investment firm specializing in private equity and real estate investments in the Middle East, North Africa and South Asia. The shareholder base of the firm includes the region's leading private and institutional investors. The firm pursues a proactive investment strategy focused on acquiring controlling interests in companies that provide significant opportunity for operational enhancement, financial restructuring and regional expansion. Its value creation model is unique in that it requires significant post acquisition operational involvement from the firm's management.
The firm has specialist expertise in a range of fields including consumer goods, finance, logistics, petrochemicals, energy and real estate and boasts a team with significant investment and private equity experience in the region.
Muscat Finance Company
Muscat Finance Company Limited SAOG (MFCMFC
) is an Oman-based company engaged in hire purchase financing and leasing of vehicles and assets, consumer durable financing, providing debt factoring and working capital finance services. MFCMFC offers financing for new and used vehicles of all major brands including passenger cars, commercial and heavy vehicles. The company also provides funding for all major consumer durables and capital assets in sectors ranging from manufacturing to services. This is done through salary deductions or structured affordable installments. MFCMFC has a debt factoring scheme as well that offers instant finance, debt collection, credit insurance and sales ledger.
The firm is a market leader having served over 80,000 customers and made disbursements of $1 billion.
Media Contacts:
Rendala Majdalani
Headline Public Relations
Tel: 9714 - 2289655 Ext 104
Fax: 9714 - 2282125
Email: rendala@headlinepr.com
© Press Release 2008
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