| 15 Oct 2008 |
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Abraaj Capital agrees to buy stake in Karachi Electric Supply Company
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100 per cent of capital injection going into the company to boost generating capacity, and enhance distribution and transmission
Ongoing negotiations with relevant authorities
, the premier investment firm specializing in private equity investment in the Middle East, North Africa and South Asia (MENASA), has entered into an agreement to acquire a stake in the biggest shareholder of Karachi Electric Supply Company Limited (KESC), the city's sole power provider.AbraajAbraaj, which manages US$ 5 billion of funds across the region, will buy new shares in KES Power Limited, giving it a 50 per cent stake and management control of KES Power. KES Power in turn owns 71.5 per cent of KESC.
The capital injection will be used to finance new equipment at KESC's aging facilities, boost generating capacity and bring in management expertise.
Saudi Arabia's Al Jomaih GroupAl Jomaih Group
and Kuwait's National Industries Holding -- KES Power's existing owners - will remain as shareholders."Turning KESC around will demand time and, above all, a prerequisite that all stakeholders play their part. In-depth discussions and agreements are being finalized, notably with local, provincial and federal authorities" said Farrukh Abbas, CEO of Abraaj CapitalAbraaj Capital Pakistan. "These agreements will be critical to the future of the company, the safekeeping of its employees and all the people of Karachi."
"Every side has a part to play. Ours includes providing very substantial funding and, critically, identifying and supporting a competent, professional management team with an established track record in the power sector. I want to stress Abraaj CapitalAbraaj Capital
's commitment to the future of the 17,000 employees who work at KESC, often under very difficult circumstances. This massive project is also critical to the lives of all the people of Karachi and touches the economic viability of the entire country."-Ends-
About Abraaj CapitalAbraaj Capital:
Based in Dubai, Abraaj CapitalAbraaj Capital is the premier investment firm specialising in private equity investment in the Middle East, North Africa and South Asia (MENASA) region. The management team has brought together some of the most compelling and successful transactions in the history of leveraged acquisitions across the region.
With US$ 5 billion of assets currently under management, AbraajAbraaj has pioneered institutionalizing private equity practice in the region and is setting trends and benchmarks for others to follow.
among the 50 Most Admired Companies in the GCC in 2007. AbraajAbraaj is also the first pure private equity firm to be registered by the Dubai Financial Services Authority to operate out of the Dubai International Financial Centre. Apart from managing its five private equity funds, Abraaj CapitalAbraaj Capital Holdings Limited (ACHL) itself is extremely well capitalized, with an issued share capital of US$ 1 billion. Its 167 professionals come from 28 nationalities and achieve a coverage that spans the MENASA region. For more information please visit www.abraaj.com
For further information, please contact:
James Cordahi / Jessica Karia
AbraajAbraaj Capital
Tel: 971-4-3191500
Fax: 971-4-3191600
Email: James.Cordahi@abraaj.com / Jessica.Karia@abraaj.com
Nicholas Nesson / Nitin Nambiar
ASDA'A Public Relations
Dubai, UAE
Tel: 971-4-3355969
Fax: 971-4-3356080
E-mail: n.nesson@asdaa.com / n.nambiar@asdaa.com
© Press Release 2008
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