Fajr Capital, a sovereign-backed private equity investor in the Middle East and Southeast Asia, has announced the exit of its investment in National Petroleum Services (NPS) to National Energy Services Reunited Corp. (NESR).

Following the signing of a definitive agreement between NESR and Fajr Capital and its co-investment partners, the transaction is expected to conclude by the end of 2017, pending customary closing conditions and approvals.

After closing, NPS will combine with NESR and Gulf Energy SAOC (GES) to become the first and only listed national oilfield services company in the Mena region. The current leadership of NPS will remain with the company after the transaction in management, senior advisory roles, and board positions. The company’s primary operating locations will be in Dammam, Saudi Arabia, Muscat, Oman and Dubai, UAE.

In April 2014, Fajr Capital led a consortium of Gulf-based investors to acquire National Petroleum Services. With over 1,500 employees and operations in 12 countries, NPS has grown to become the largest regionally-owned oilfield services provider in the Middle East delivering drilling, customised well services and support to clients across Mena and Southeast Asia.

Iqbal Khan, CEO of Fajr Capital said: “We are very pleased with the outcome of our investment in National Petroleum Services. National Petroleum Services, with the support of all its shareholders and partners and under the able stewardship of CEO Adnan Ghabris, has expanded its geographic footprint, accelerated its growth trajectory, and has established itself as the regional industry leader since our investment in 2014. We believe National Petroleum Services is well-positioned for the future and would like to wish Sherif Foda and the NPS management team continued success. This successful exit validates the investment thesis we have advanced in recent years, and we remain committed to investing across our focus sectors and markets.”

“Together with the other shareholders, Fajr Capital has played an important role in our recent success and positioned NPS for a new phase of growth,” added Adnan Ghabris, CEO of National Petroleum Services. “The combination of NPS and GES will provide our valuable clients with a wide range of oilfield services and technologies across Middle East and North Africa. The combined company will be a comprehensive provider of services with a scalable platform in the region. This will create the largest indigenous MENA-focused oilfield services player.”

Sherif Foda, chairman of the Board and CEO of NESR, said: “We formed NESR to invest in the oilfield services sector globally, and this transaction represents the first step in that strategy. The combination of NPS and GES provides an ideal platform to create a leader in oilfield services in the MENA region. With the support of our esteemed customers, we want to create a truly national services company which has its roots in the region. I am grateful to Fajr Capital for their confidence in NESR and look forward to working with the entire NPS and GES teams to realise our exciting vision.”

Citigroup and Freshfields Bruckhaus Deringer acted as the sell-side advisers, while J.P. Morgan acted as the sole financial advisor to NESR. - TradeArabia News Service