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 November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Port of Houston Expecting Record Year

The Port of Houston Authority is expecting 2014 to close as a banner year for the port, with 34 million tons of cargo handled through November, Executive Director

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

Finance

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

US Plans to Shut Royalty Loophole on Coal Exports

U.S. coal companies will no longer be able to settle royalties at low domestic prices when they make lucrative sales to Asia according to reforms proposed by the Interior Department on Friday.

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

News

Port Workers in Argentine Grain Hub End Strike

Port workers in part of the Argentine grains hub of Rosario lifted a work stoppage on Friday, only a day after they went on strike over demands for higher year-end bonuses, a union official said.

Madsen to Chair Norway’s Research Council Executive Board

Henrik O. Madsen appointed chairman of the executive board of the Research Council of Norway   DNV GL president and CEO Henrik O. Madsen was appointed as chairman

Larger Tankers May Offer Better Return Chances

Investors looking for returns in the tanker markets can invest their capital in a variety of ways. Should an owner invest in a VLCC or an Aframax? How about an

Mergers & Acquisitions

Hapag-Lloyd Completes CSAV Merger Capital Increase

Hapag-Lloyd completed the planned capital increase of EUR 370 million (approximately $452.5 million) as part of the business combination with the Chilean shipping

Teekay Tankers to Acquire 5 Tankers

Teekay Tankers Ltd. announced that it will acquire four coated Aframax tankers and one uncoated Aframax tanker for an aggregate purchase price of approximately $230 million.

DP World: Shareholders Back EZW buy, London Delisting

Shareholders of DP World have approved buying Economic Zones World from its majority shareholder and also backed the port operator's delisting from the London Stock Exchange,

Middle East

Libyan State Oil Firm NOC Will Remain Independent

Libya's Tripoli-based state firm National Oil Corp (NOC) will remain independent, it said on Thursday, in an apparent attempt to reassure foreign oil buyers it will stay out of the country's conflict.

Jackup Rig Delivered to Abu Dhabi’s NDC

Lamprell delivers its 11th Super 116E jackup drilling unit Lamprell has completed the construction of jackup drilling rig, the Shuwehat, and has delivered the

Captain, Officer of Containership Detained after Deadly Collision

The captain and first officer of a Kuwaiti container ship have been detained for four days after their ship collided with a fishing vessel in the Red Sea, killing 13 Egyptians,

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1726 sec (6 req/sec)