UAE Utility Firm Bags Deal worth $400 Million
One of the UAE’s leading private service, Utico has endorsed an investment agreement with Majis Industrial Services, a Government of Oman owned organization with an investment deal that has been valued at $400 million.
Utico stated that the deal was organized by Emirates NBD Capital, which is the financial advisor of Utico. On the other hand, White & Case offered legal advisory support to Utico and Clyde & Co. offered legal advice to Majis Industrial Services (MIS).
Rashed Mehran Al Balooshi, Chairman of Utico stated that the investment made by Majis is one more proof of trust from our investors in our exclusive business model, ability and the amazing growth possibility of the company. It is also an affirmation and confirmation of our devotion to the social and economic fabric of a nation where it operates.
He said that funding also stood out over the fact that it reinforces economic cooperation between Oman and the UAE. He even added that the investment by the Oman Government via its sovereign funded entity in an Emirati utility company also complements economic relations between the two nations.
Ahmed Mazroui, CEO of MIS stated that they are very happy about the likelihood of the deal being presented with Utico and would also work with them on other projects.
Richard Menezes, CEO of Utico, stated that the Majis’s investment was in accordance with the assurance other Sovereign investors have displayed in the company before as well. He added that Utico is the first large water player to obtain such a large collection of Sovereign financing. Over the last three years, the total deal of investments acquired by Utico is around US$740 million, which contain Sovereign investments from the governments of Saudi Arabia, Bahrain and Brunei and also from Spain’s utility leader, Grupo Cobra.
Utico had proclaimed its desire to go public late last year and has selected Emirates NBD as its advisor. Fahad Al Qassim, Chief Executive Officer, ENBD Capital stated that this is a historic transaction in the Middle East Utility sector, that has been made possible because of Utico’s heights, accomplishments and leadership within the sector. He added that his company is proud to work with Utico on this prestigious project.