Al Waha Maritime buys 49% stake in GMMOS Group

Abu Dhabi: Al Waha Maritime, a subsidiary of Waha Capital - the Abu Dhabi Securities Exchange-listed diversified holding company, on Monday acquired a 49 per cent stake in GMMOS Group.

The acquisition follows an agreement between Waha Capital with private equity firm Abraaj Capital. GMMOS Group is an Abraaj Capital portfolio company and a major regional industrial group operating in the marine, oil & gas and crane-hire sectors across the high-growth Gulf and Caspian markets.

Under the agreement, Al Waha Maritime had acquired 40 per cent of the strategic investment from investors exiting the co-investment vehicle, and the remaining nine per cent was acquired from Abraaj Buyout Fund II (ABOF II).

Proceeds from the sale of the nine per cent ABOF II stake will be applied towards reducing the cost of the original Abraaj Capital investment, Abraaj said in a statement yesterday.

Growth strategy

"This acquisition is in line with our strategy to build a significant regional maritime business alongside other businesses from our base in Abu Dhabi," Waha Capital's chief executive Samer Al Haj said.

In May 2007, Abraaj Capital, together with co-investors, had acquired 100 per cent of GMMOS Group, through its $500 million ABOF II.

"As one of the leading suppliers to the offshore industry, GMMOS Group is uniquely positioned to meet the needs of companies active in offshore exploration and development in the Gulf and Caspian regions," said Arif Naqvi, vice-chairman and group chief executive officer, Abraaj Capital.

GMMOS has witnessed strong growth over the past few years across all its business divisions. This trend is expected to continue, driven by sustained high oil prices, increased oil and gas-related spending, growth in the regional construction sector and the overall economic growth in the region.

"This is the first step in the long-term business development programme for Waha Maritime, our newly created subsidiary. Waha Maritime is keen on identifying acquisition and joint venture opportunities in the wider Gulf region," Al Haj said.

This is the first step in the long-term business development programme for Waha Maritime, our newly created subsidiary. Waha Maritime is keen on identifying acquisition and joint venture opportunities in the wider Gulf region."