Petrofac has entered into an Agreement to sell Petrofac Emirates to a consortium of financial investors led by Mason Capital Management LLC and Pearlstone Alternative (UK) LLP.
Petrofac Emirates encompasses Petrofac's core Engineering & Construction (E&C) capability, including the E&C execution teams in the UAE, Chennai and Mumbai. The transaction will position Petrofac Emirates as a strong, self-sustaining company with no funded debt on its balance sheet and substantial growth opportunities.
Tareq Kawash, Group Chief Executive of Petrofac, said: 'This is a great outcome for Petrofac Emirates and marks another milestone in Petrofac Group’s restructuring. It preserves Petrofac’s execution and engineering capability and delivers continuity for the contracts currently under execution. Mason has significant experience in our industry and we believe this transaction will enable Petrofac Emirates to grow ambitiously and build on its extensive track record. I want to express my gratitude to the Petrofac team, our customers and our partners for their support which has been critical in this process. With Petrofac Emirates’ strong presence and experience in the UAE, it is well positioned for future success in our home market as well as in the wider MENA region.'
Sam Read, Partner at Mason, said: 'Our mission is to empower Petrofac Emirates to achieve its strategic goals, capitalise on new market opportunities, and leverage significant growth potential in the dynamic energy engineering, procurement and construction (EPC) sector. Petrofac Emirates has market-leading capabilities and an unmatched track record of delivering for its customers, and we look forward to partnering with the company to help drive continued success.'
James Bennett, Senior Managing Director at Teneo and Joint Administrator of Petrofac Limited, said: 'Today’s announcement is the product of many months’ work to deliver a strong outcome for Petrofac Emirates. It gives the business a clear route forward under new ownership and supports a smooth transition for customers, suppliers and employees. We are grateful for stakeholders’ continued support and look forward to seeing Petrofac Emirates create a strong platform for the future.'
Completion of the transaction is subject to certain conditions, including customary governance, regulatory and stakeholder approvals which will be obtained as promptly as possible.
Source: Petrofac
