Dubai: Ithmar Capital, one of the region's leading private equity players, has completed 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 Consortium 2 has acquired 30 million shares at a cost of approximately Dh355 million ($97 million).
The proceeds will allow Mushrif to expand its business into the UAE market through acquiring major UAE construction businesses.
Under a management and shareholding agreement 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 (Kipco Asset Management Company) offices in Kuwait by Khaldoun Haj Hassan, co-founder and managing partner of Ithmar Capital, and Fahed Al Wazzan, chairman of MTCC.
Achievements
"This is a clear case of private equity delivering value to a highly successful company by helping it grow through acquisitions in the key markets of Kuwait, the Emirates and Qatar," said Haj Hassan. The deal has provided additional management expertise to identify investment and expansion opportunities in premier marketplaces and the necessary capital to attain new strategy goals.
"The past year has seen Mushrif consolidate its presence throughout the Gulf and expand into the specialised marine construction, piling and foundation works, electro-mechanical and oil and gas sectors. The time is right to enhance these strategic efforts with a fresh era of growth," said Fahed Al Wazzan.
MTCC, a multi-disciplinary contractor, is currently executing projects in the UAE, Saudi Arabia, Qatar and Kuwait with an estimated value of Dh3.9 billion.
The deal expands Ithmar's extensive portfolio into the GCC's important construction sector.
"Ithmar Capital has a portfolio of investments in excess of $500 million, targeting growth capital and buyout opportunities in attractive sectors in the Gulf such as oil and gas, healthcare and education. MTCC is a strategic deal which demonstrates our interest to tap into the booming construction sector in the region," explained Faisal Belhoul, founder and managing partner, Ithmar Capital.
Role of Kamco
Kuwait's Kipco Asset Management Company (Kamco) acted as financial adviser for Mushrif in arranging the agreements with Allen & Overy and Bryan Cave acting as legal advisors to MTCC and Ithmar Capital respectively. Anthony Kyprianou, DGM, Financial Service and Investment Division representing Kamco, was also present.
© Gulf News 2007
