Mitsubishi Takes Stake in UAE Water Firm Metito

Posted by Eric Haun
Monday, July 07, 2014

Japan's Mitsubishi Corp and Mitsubishi Heavy Industries have acquired a 38.4 percent stake in water and wastewater project developer Metito Holdings for an undisclosed sum, the United Arab Emirates-based firm said.

In addition, the Japan Bank for International Cooperation will provide up to $92 million in funds to Metito to help finance its expansion plans.

Japanese firms' global network and expertise will help Metito develop its operations, said Metito chief executive Rami Ghandour.

"We have outgrown the region and we need to position ourselves for the next stage of our growth," Ghandour said in a telephone interview.

"We have some very aggressive plans and we feel there is definite room in the global water market for us to be the world's leading emerging markets player."

While Metito could look to bid for projects in collaboration with its new stakeholders, Ghandour said that would only happen for large projects which Metito couldn't do on its own.

The new funding secured under the deal will be used to expand some of the firm's existing schemes, as well as for new schemes in China and African markets it is targeting, including Ghana and Rwanda, he added.

Metito currently has a portfolio of water and wastewater assets worth in excess of $1 billion, according to the company.

PE Exit
The Japanese transaction provides Abu Dhabi-based private equity firm Gulf Capital with a partial exit from its 2006 investment, reducing its holding in Metito to 23.8 percent from 56 percent, Metito said.

World Bank unit International Finance Corp cut its 6 percent stake in Metito, originally bought in 2007, to 3 percent under the Mitsubishi deal.

While not disclosing how much it made from the sale, Gulf Capital chief executive Karim El Solh said the offloaded stake returned more than three times its initial investment. He added that Gulf Capital planned to keep its remaining stake.

"We've distributed nice proceeds to our investors but we feel the remaining stake will be worth much more down the line. What we will do with it, we shall see in a few years but, for now, we are enjoying the exciting growth ahead," Solh said in the same telephone interview.

The stake sale ends the possibility that shares in Metito could be offered to the public any time soon - the company had previously said it was interested in a flotation, with London, Singapore and Hong Kong said to be options.

"We have the JBIC funds so that should keep us going in terms of funding new projects," said Ghandour.

"We are a capital-intensive business so at some time in the future we will need to examine what our funding strategy is. Whether that is an IPO or something else we will have to decide."

(By David French; Editing by Andrew Torchia)

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Syncrude Uncertain about Plant Fire Affecting Production

The operator of Canada's largest synthetic crude project said on Saturday it is investigating the causes of an early morning fire at an upgrading plant. Firefighters extinguished the blaze,

Hurricane Ignacio Gains Strength but Expected to Bypass Hawaii

Hurricane Ignacio intensified as it blew across the Pacific on a route likely to bypass Hawaii on Saturday, said the Central Pacific Hurricane Center of the National Weather Service.

United Heavy Lift Gears up for the Asian Boom

All set to expand its footprint in the South Asian market significantly, Hamburg based, United Heavy Lift (UHL) appointed strategically placed Lexicon Overseas Pvt Ltd.

Finance

Optimistic on VLCC Market

Shipbroker Charles R. Weber is quite optimistic on the future prospects of the VLCC market for 2016 onwards.   The demand is expected to remain elevated with

Goldenport Bleeds in Red

Goldenport Holdings Inc reported a net loss of USD14.7 million in the first six months of 2015, significantly wider than the USD1.4 million net loss a year earlier

Strong Returns for Sovcomflot

Russia’s biggest shipping company PAO Sovcomflot (SCF Group) surpassed its own expectations and went forward on both revenue and net profit in the first six months.

News

Obama Defends Arctic Oil Drilling

United States' President Barack Obama defends his decision to allow Royal Dutch Shell to drill for oil in the Arctic Ocean.   He insisted that there was no contradiction

Optimistic on VLCC Market

Shipbroker Charles R. Weber is quite optimistic on the future prospects of the VLCC market for 2016 onwards.   The demand is expected to remain elevated with

Eni Finds Giant Egyptian Offshore Gas Field

The Italian energy major Eni SpA discovered a “super giant” natural gas field offshore Egypt in what the Italian oil company said is the largest find in the Mediterranean Sea.

Mergers & Acquisitions

Keppel Acquires Cameron's Rig Business

Singapore's Keppel Offshore & Marine (KOM), via subsidiary, Keppel Offshore & Marine USA  has inked a deal with Cameron International Corporation, a US-based oil and gas solutions provider,

TASI Acquires SignalFire Telemetry

TASI HOLDINGS INC. announced today it has completed the acquisition of all shares of SignalFire Telemetry, located in Hudson, Massachusetts.  This new acquisition

IRS Opens Office in Abu Dhabi

Indian Register of Shipping (IRClass), a leading Classification Society, today announced it has opened offices in Abu Dhabi. Abu Dhabi is the second office

Middle East

Oman Drydock Company Expands Rapidly

Oman Drydock Company (ODC) is growing fast. In January, the yard hit an important milestone - its 300th drydocking. Harnessing the power of its new $1.8 billion, 1.

Iranian Ship, Crew Escape Captivity off Somali Coast

An Iranian fishing vessel and its crew have escaped after being held captive for five months by Somali fishermen, maritime piracy experts said on Friday, but it

Oil Steadies as Equities Rally

Recovering stock markets boost oil prices; U.S. crude on track for first weekly gain in nine weeks. Oil prices steadied on Friday after bouncing back from six-and-a-half-year

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2888 sec (3 req/sec)