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Ithmar Capital acquires MTCC's new shares

Dubai, Sept. 18, 2007 (WAM) -- Ithmar Capital , one ofthe region's leading private equity players, - has successfullycompleted the acquisition of the entire new share issue of Kuwait's Mushrif Trading & Contracting Company ( MTCC ), a leading GCC construction firm, with the transaction now complete.

Under the agreement, Ithmar Capital 's UAE affiliate Gulf Consortium2 has acquired 30 million shares at a cost of approximately AED355 million (approximately US$ 97 million).

The use of the proceeds will allow Mushrif to further expandits business into the UAE market through acquiring major UAEconstruction businesses. Under a management and shareholdingagreement between the two, Ithmar Capital/Gulf Consortium 2,now holds three seats on the MTCC Board of Directors.

The deal was signed at a meeting which was held at KAMCO (KIPCOAsset Management Company) offices in Kuwait by Khaldoun Haj Hassan,Co-Founder and Managing Partner, Ithmar Capital and Fahed AlWazzan, Chairman of MTCC .

"This is a clear case of private equity delivering value to ahighly successful company by helping it grow through acquisitionsin the key markets of Kuwait, the Emirates and Qatar," said HajHassan.

The deal has provided additional management expertise to identifyinvestment and expansion opportunities in premier marketplacesand the necessary capital to attain new strategy goals.

"The past year has seen MUSHRIF consolidate its presence throughoutthe Gulf and expand into the specialised marine construction,piling and foundation works, electro-mechanical and oil and gassectors. The time is right to enhance these strategic effortswith a fresh era of growth," said Fahed Al Wazzan, Chairman of MTCC .

MTCC , a multi disciplined contractor, is currently executingprojects in the UAE, Saudi Arabia, Qatar and Kuwait with an estimated value of AED 3.9 billion.

"Mushrif has extensive design and build capabilities across arange of civil, infrastructure, marine, oil and gas, environmentaland industrial works and, through considered acquisition, canemerge as a serious competitor in the Emirates where ongoingpublic and private sector development has led to phenomenal growth within the construction sector," added Haj Hassan.

The deal also expands Ithmar's extensive portfolio into the GCC 'simportant construction sector. " Ithmar Capital has a portfolioof investments in excess of US$500 million, targeting growthcapital and buyout opportunities in attractive sectors in theGulf such as oil and gas, healthcare and education. MTCC is astrategic deal which demonstrates our interest to tap into thebooming construction sector in the region," explained FaisalBelhoul, Founder and Managing Partner, Ithmar Capital .

Kuwait's KIPCO Asset Management Company (KAMCO) acted as financial advisor for Mushrif in arranging the agreements withAllen & Overy and Bryan Cave acting as legal advisors to MTCCand Ithmar Capital respectively. Also present was Mr. AnthonyKyprianou, DGM, Financial Service & Investment Division representing KAMCO.