04 November 2015
Dubai, Arqaam Capital ("Arqaam"), the specialist emerging and frontier markets investment bank, today announced the successful exit from its infrastructure fund's investment in Oman's Sembcorp Salalah Power and Water Company SAOG (MSM: SEMB) "SSPWC" through a trade sale to the Diwan of Royal Court Pension Fund, Sultanate of Oman.
BDCC Investment Company ("BDCC"), a special purpose vehicle wholly owned by an infrastructure fund currently managed by Arqaam, invested in SSPWC during the construction phase in late 2011. This investment was part of the infrastructure fund's strategy to create a balanced portfolio across brownfield and greenfield assets ensuring that the risk and return profiles are in line with the fund's investment policy.
Demand for power and water is expected to continue growing in the MENA region due to sustained economic growth, an expanding population and a high household consumption of electricity and water compared to the rest of the world.
Dennis Wijsmuller, Chief Operating Officer of Arqaam, said: "With governments across the region increasingly encouraging an active role of the private sector in infrastructure investments, Arqaam is well positioned to continue playing a major role in this important asset class. This milestone validates the infrastructure asset management team's ability to achieve returns for our investors throughout the full investment cycle having sourced the investment in 2011, exited partially via an IPO in 2013 and completed a full trade sale in 2015."
SSPWC has been in full commercial operation since May 2012 and is the largest and most energy-efficient power and water plant in the Dhofar Governorate in Oman with a net power capacity of a 489 MW and water capacity of 15 million imperial gallons per day. The facility currently supplies more than 70% of the power dispatch and 100% of the net installed desalinated water capacity of the Dhofar Governorate.
Lim Yeow Keong, Chief Executive Officer of Sembcorp Salalah Power & Water Company said: "We thank BDCC, one of our founding shareholders, for their contribution to the success of Sembcorp Salalah and take this opportunity to welcome Diwan of Royal Court Pension on board."
Suhail Hajee, head of the infrastructure asset management division at Arqaam, commenting on the exit: "We are pleased to have played an instrumental role alongside our fellow founding shareholders and the management team of SSPWC in shaping the success story of the company. SSPWC has been a great investment for us and we believe it will continue to be so in the future".
About Arqaam Capital:
Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target emerging markets. Arqaam Capital operates out of three hubs, namely the Dubai International Financial Centre (DIFC), Cairo and Johannesburg. Arqaam Capital has ten business lines - Corporate Finance, Asset Management, Cash Equity, Credit Trading, Equity Derivatives, Capital Markets Advisory, Infrastructure, Principal Finance, Treasury and Custody. In addition, Arqaam provides in-depth research on 260 listed Middle East and Africa (MEA) companies across 26 countries and a wide-range of sectors, including the largest global coverage of MENA equities.
For more information, please contact:
Mohamed El Khalouki
Tel: +971(0)4 507 1912
Edward Moore (Brunswick)
Tel: +971 4 446 6270
List Of Parties Involved
Arqaam Capital: Adel Louahem M'Sabah (Director), Carlo Pietrangeli (Analyst)
Legal Advisors: Curtis, Mallet-Prevost, Colt & Mosle (Muscat), Conyers Dill & Pearman Limited (Dubai)
© Press Release 2015