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Mushrif plans expansion with KD27m in Dubai cash

Company to buy construction businesses in UAE
KUWAIT CITY: Mushrif Trading & Contracting Company KSCC has recently signed a subscription and warranty agreement with a UAE-based company to increase its capital. This was announced Sunday during a press conference held at the Kipco Asset Management Company (KAMCO) headquarters at the Al Shahed Tower in Sharq. In the agreement signed between Mushrif Trading & Contracting Co. and Gulf Consortium 2 LLC, a member of the UAE-based Ithmar Capital Group , the two companies have agreed that the UAE company shall subscribe for the entire 30,000,000 new shares issued, at a price of 900 Kuwiati fils per share with a par value of 100 Kuwaiti fils and a share premium of 800 Kuwaiti fils. With the infusion of new funds, Mushrif's paid share capital will increase 100 per cent from KD3 million to KD6 million.

It was also announced during the press conference that the two parties also signed a Share Purchase Agreement allowing for Mushrif to use KD16.4 million of the subscription proceeds to purchase major construction businesses in the UAE, and a further agreement that the acquisition shall be completed no later than 20th September 2007. According to Mushrif Trading & Contracting Co. Chairman Fahad Al Wazzan, the agreements were struck following approval of the relevant resolutions by the Mushrif General Assembly held last May 13, 2007 calling for the increase in capital and agreeing on the broad terms of what was finalized in the agreements. The two companies, furthermore, signed a Management and Shareholding Agreement whereby three members from the Ithmar Capital and/or Gulf Consortium 2 LLC shall sit on the Board of Mushrif Trading & Contracting Company .

Specializes
Mushrif Trading & Contracting Company was established in 1968 and specializes in providing contracting and building services to numerous key sectors of the construction industry, in seven different countries spanning from Saudi Arabia to Iran; and has plans to concentrate its activities in the Kuwaiti, Qatari and UAE markets. The company is pre-qualified as a Grade 1 company in Kuwait by the Central Tenders Committee and besides Kuwait, also has presence in Qatar, Bahrain, Kingdom of Saudi Arabia, Iran, Iraq and the UAE. It also has three wholly owned or controlled Kuwaiti subsidiaries such as: Foundmar, a WLL company for Foundation, Marine Works and Contracting; Alliance Engineering General Trading & Contracting Company WLL; and CRT General Trading & Contracting Company WLL. Mushrif also has an estimated KD 300,000,000 worth of projects being executed in the UAE, the Kingdom of Saudi Arabia, Qatar and Kuwait. UAE-based Ithmar Capital, on the other hand, is a GCC-focused private equity firm with a portfolio of investments in excess of US$ 500 million that include interests in a number of strategic sectors such oil and gas, healthcare and education.

Among its shareholders and investors include some of the most reputed and sophisticated parties from across the GCC; and is the first private GCC equity firm to have formed a strategic alliance with a leading international pure private equity firm: 3i of the UK; bringing onboard tremendous industry expertise and best in class practices and corporate governance. The event was organized by Kipco Asset Management Company (KAMCO), the Exclusive Financial Advisor for Mushrif, and in attendance were: Mushrif Trading & Contracting Company Chairman Al Wazzan, board member Saad Al Wazzan, Khaldoun Haj Hasan -- Managing Partner, Ithmar Capital, representing Gulf Consortium 2 LLC; Anthony Kypriano -- DGM, Financial Services & Investment Division representing KAMCO; and representatives from Allen & Overy and Bryan Cave (legal advisors to both Mushrif and Ithmar Capital).

By Boie Conrad Dublin

© Arab Times 2007