QFIB and SPPC announce the successful closing of ENPI
Doha, QATAR: Qatar First Investment Bank (QFIB), Qatar's first independent Shari'ah compliant investment bank authorized by the QFC Regulatory Authority (QFCRA) and Saudi Printing & Packaging Co. (SPPC) announced the successful completion of the Emirates National Factory of Plastic Industries (ENPI Group) deal.
QFIB's 71.3% stake, a majority share in ENPI, was sold to SPPC, a publically traded Saudi firm specialized in providing printing packaging solutions. ENPI Group is the leading producer of flexible and rigid plastic packaging solutions having strong manufacturing base including 8 factories in Sharjah, Abu Dhabi and Riyadh.
The acquisition was announced at a closing ceremony held at Saudi Research & Marketing Group's headquarters in Riyadh. The ceremony was attended by HRH Prince Fasial bin Salaman bin Abdulaziz and a number of high ranking officials from KSA, Qatar and UAE.
QFIB acquired a 71.3% stake in ENPI Group in July 2009 and since then has played an instrumental role in cementing ENPI's position as a leading player in the plastic packaging solutions industry by streamlining the business, institutionalizing operations and expanding ENPI's manufacturing base to include Abu Dhabi and Saudi Arabia.
QFIB chairman, Abdulla Bin Fahad Al Marri commented "QFIB' business strategy focuses on investing in companies that demonstrate positive growth potential. ENPI had such capabilities. During our holding period, ENPI managed to successfully grow and expand where its revenue has more than doubled since our acquisition. We are pleased with the successful exit of ENPI which has generated for the Bank an IRR of 31%.
Emad Mansour, CEO of QFIB commented: "ENPI represents the typical size and sector that we target in our investment strategy. From the outset we worked closely with ENPI's management team to effectively implement strategic growth plans and streamline the company's operations. Our successful exit of ENPI is a testament to our ability to grow our portfolio companies, in-spite of difficult market conditions, while generating sound returns for our investors. We would like to thank Nizar Rajoub, ENPI's Founder and CEO, for his unwavering commitment to growing the business and establishing ENPI as a regional player in the plastic conversion manufacturing sector."
Nizar Rajoub, Founder and CEO of ENPI commented "We thank QFIB for their valuable expertise and insight during this important phase of ENPI group's business cycle. QFIB shared our vision and strongly believed in the company's growth potential. QFIB played a critical role in helping ENPI build the foundations for the next phase of our growth. We are looking forward to working with SPPC to further cement the position of ENPI Group as a leading provider of plastic packaging solutions
Saad AlAzwari, Board Member and CEO of SPPC commented "It was a pleasure to work with QFIB on the structuring of this transaction. QFIB's team demonstrated professionalism and commitment throughout the negotiation process. This acquisition is part of our strategy to pursue inorganic growth opportunities. We are very excited to add ENPI to our portfolio of businesses and look forward to fully leverage the potential synergies and growth opportunities from this acquisition."
Jadwa Investment acted as the exclusive financial advisor to SPPC. Sajid Riaz, Managing Director of Investment Banking commented "This is a landmark transaction which will cement SPPC's position as a major regional player in the packaging sector. The innovative acquisition structure will ensure that the transaction is immediately accretive to the shareholders of SPPC."
As part of the deal QFIB will retain FutureCard and TechnoCard, which form the technology businesses of ENPI. FutureCard is the leading manufacturer of smart cards having strong expertise in designing, manufacturing and customization of all types of cards. FutureCard has a client base of more than500 customers in over 80 countries.
About QFIB
Qatar First Investment Bank (QFIB) is the first independent Shari'ah compliant investment bank authorized by the QFC Regulatory Authority (QFCRA) and is ISO 27001 certified.
QFIB was launched in 2009 with an authorized capital of QAR 3.65 billion (US$ 1bn) and a paid up capital of QAR 1.6 billion (US$ 430 million) providing the financial strength to capitalize on lucrative investments.
QFIB operates to the highest of international business regulatory standards and corporate governance. It offers Principal Investments, Asset Management and Corporate Finance Advisory services.
Adopting an investment strategy that centres on sector and geographical diversification, QFIB's target sectors include the energy, financial services, industrials, real estate, and health care services.
Since inception, QFIB has executed a number of transactions in five different sectors across three geographies, and successfully exited four investments.
QFIB was recognized as the "Best Investment Bank in the GCC" under Islamic Business & Finance category by CPI Financial in 2011 and has won the accolade of the "Best Financial Service Industry Deployment of the Year" by Computer News Middle East. QFIB plans to list in Qatar Exchange in the near future.
About SPPC Group
SPPC is a publicly traded company listed in KSA stock exchange and it was established in Jeddah in 1963. SPPC is specialized in the production of daily newsprints and other loose-leaf publications, magazines targeting various segments of the Arab World, perfect bound books and journals, and providing packaging printing solutions in different languages and styles in line with the international standards. The acquisition will enable SPPC to provide its customers with more product portfolio to its existing packaging products.
About ENPI Group
Established in 1995, ENPI is one of the MENA region's leading plastics manufacturers with a diverse customer base of more than 3,000 clients in over 54 countries. The company's has a strong manufacturing base that includes Sharjah, Abu Dhabi, and Riyadh.
ENPI produces superior quality products including polyethylene bags and rolls, paper and plastic cups, plastic bottles and closures and boarding passes for the food, retail and packaging industry. ENPI employs over 1,200 personnel, including printing technologists, polymer engineers and sales and marketing professionals.
Media Contact:
Samar Atassi
Head of Corporate Communications
Qatar First Investment Bank
Direct: +974 4448 3355
Fax +974 4448 3359
Email: samar.atassi@qfib.com.qa
P.O. Box 28028 Doha, Qatar
© Press Release 2013
