APICORP buys stake in Saudi Arabia's TAQA

09/10/2013 07:53 AST

The Arab Petroleum Investments Corporation (APICORP) has acquired a 5.62 per cent equity stake in Saudi-based The Industrialization and Energy Services Company (TAQA) from Arabian Pipes Company (APC).

APICORP is now the joint third largest shareholder in the company with over 11.2 million shares. A Closed Joint Stock Company established in 2003 as part of Saudi Arabia's privatisation strategy, TAQA is owned 45 per cent by the Saudi Government, with the reminder owned by several institutional, private and industrial investors.

Ahmad Bin Hamad Al Nuaimi, APICORP's CEO and GM said, "The TAQA equity acquisition is a perfect fit for our investment strategy. It is consistent with our commitment to supporting prominent Arab energy companies that show significant growth and value-creation potential. At the same time, it dovetails well into our objective of diversifying into sectors that provide vital support services for the hydrocarbon industry. TAQA has achieved robust growth over the last decade and its development has also brought tangible economic benefits, one of them being transfer of know-how. As part of our mandate, we are keen to invest in companies like TAQA, which play a crucial role in helping Arab countries maximize efficiencies in the energy value chain. As the company gears to expand its operations, we look forward to supporting its growth along with other key shareholders."

"TAQA's growth and ambitious expansion make it a very valuable addition to our investment diversification programme, which earlier this year saw the launch of the APICORP Petroleum Shipping Fund. Establishing the right balance in our funding composition and prudently managing our debt has allowed us to accelerate the momentum of our investment growth. The success of our investments is borne out by our high asset quality, which was a key factor in Moody's affirmation of APICORP's Aa3 rating in September. Encouraged by these positives, we will continue to explore investment opportunities in new oil and gas and services sectors across the Arab world," added Al Nuaimi.

CPI Financial