Ithmar Capital, a leading private equity firm, has acquired the entire new share issue of Kuwait’s Mushrif Trading & Contracting Company (MTCC).

MTCC is a leading GCC construction firm.

Under the agreement, Ithmar Capital’s UAE affiliate Gulf Consortium 2 has acquired 30 million shares of MTCC at a cost of approximately Dh355 million ($97 million).

The proceeds will allow Mushrif to further expand its business into the UAE market through acquiring major UAE construction businesses.

Under a management and shareholding agreement between the two, Ithmar Capital/Gulf Consortium 2, now holds three seats on the MTCC Board of Directors.

The deal was signed at a meeting held at Kamco (Kipco Asset Management Company) offices in Kuwait by Khaldoun Haj Hassan, co-founder and managing partner, Ithmar Capital, and Fahed Al Wazzan, chairman of MTCC.

“This is a clear case of private equity delivering value to a highly successful company by helping it grow through acquisitions in the key markets of Kuwait, the Emirates and Qatar,” said Haj Hassan.

The deal has provided additional management expertise to identify investment and expansion opportunities in premier marketplaces and the necessary capital to attain new strategy goals, he said.

“The past year has seen Mushrif consolidate its presence throughout the Gulf and expand into the specialised marine construction, piling and foundation works, electro-mechanical and oil and gas sectors. The time is right to enhance these strategic efforts with a fresh era of growth,” said Fahed Al Wazzan, chairman of MTCC.

MTCC, a multi disciplined contractor, is currently executing projects in the UAE, Saudi Arabia, Qatar and Kuwait with an estimated value of Dh3.9 billion.

“Mushrif has extensive design and build capabilities across a range of civil, infrastructure, marine, oil and gas, environmental and industrial works and, through considered acquisition, can emerge as a serious competitor in the Emirates where ongoing public and private sector development has led to phenomenal growth within the construction sector,” added Haj Hassan.

Kamco acted as financial advisor for Mushrif in arranging the agreements with Allen & Overy and Bryan Cave acting as legal advisors to MTCC and Ithmar Capital respectively.  – TradeArabia News Service