Petrofac has announced the successful completion of the sale of Petrofac Emirates to a consortium of financial investors led by Mason Capital Management LLC and Pearlstone Alternative (UK) LLP, following the satisfaction of all required conditions and approvals.
Petrofac Emirates encompasses Petrofac's core Engineering & Construction (E&C) capability in the UAE. The transaction positions Petrofac Emirates as a strong, self-sustaining company with no funded debt on its balance sheet and substantial growth opportunities.
Tareq Kawash will take on the role Chief Executive Officer of Petrofac Emirates, to lead the E&C business through its next phase under new ownership. Tareq has over 30 years’ international EPC leadership experience and will provide continuity for customers and stakeholders and a renewed focus on growth.
Following completion of the sale of Petrofac’s two principal divisions, Afonso Reis e Sousa will step down as Group Chief Financial Officer of Petrofac.
Tareq Kawash, Chief Executive Officer of Petrofac Emirates, said: 'The completion of this transaction marks an important milestone for Petrofac Emirates and the beginning of an important new chapter for the business. Under our new ownership structure, with a focused platform for growth, we are well positioned to build on our track record, strengthen our long-standing customer relationships and pursue new opportunities across the wider MENA region. The transaction is not the destination, it is the platform from which we move forward with confidence, discipline, and ambition. I would also like to thank Afonso Reis e Sousa for his professionalism, dedication and leadership during his time at Petrofac. His support throughout an intensely challenging period of restructuring has been invaluable and he has played an important role in positioning the business for this next chapter.'
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: 'The completion of this transaction is an excellent outcome for Petrofac, and follows the completion of the sale of Petrofac Asset Solutions in April. The completion of these complex carve outs reflect the tenacity and significant efforts of Petrofac management, the wider Petrofac teams, our key clients, the buyers and each party’s legal and financial advisors including Teneo, Linklaters, Weil and Houlihan Lokey. Many thanks for all the effort to get this closed. The businesses now have clear routes forward under new ownership and strong foundations for future success.'
Source: Petrofac
