Investcorp to acquire 35% stake in Kuwaiti Automak

Investcorp, a provider and manager of alternative investment products, and Automak Automotive Company, a vehicle leasing and rental company in Kuwait, announced on Sunday that an agreement has been signed under which Investcorp’s Gulf Opportunity Fund will acquire a 35 per centstake in Automak through a capital injection.

Founded in 2002 by Al Kharafi Projects Co. and Ghazi Omar, Automak is one of the few major players in the vehicles rental and fleet leasing business with over 15 per cent market share in Kuwait. Automak operates a fleet in excess of 4,500 vehicles. Its premier clients include national oil companies, public ministries and multinational corporations.

The vehicle rental and leasing sector is a growing industry in the GCC region as companies seek to de-lever their balance sheets and favour renting fleets of vehicles versus ownership. In Kuwait, the sector is expected to sustain its strong growth, supported by favourable demographics, further expansion of the oil sector and increased government expenditure. This trend is expected to continue across the GCC and the wider MENA region.

Mohammed Al Shroogi, Investcorp’s President, Gulf Business, said: “Automak is our sixth investment in the region and our second in a strong and established Kuwaiti company. We believe Automak is a market leader in an attractive sector with a robust business model and is well positioned to grow locally and regionally.”

Ghazi Omar, Vice Chairman, Automak, said: “In just ten years, Automak has been able to establish itself as one of the largest players in the Kuwaiti vehicle leasing sector. We believe that there are attractive opportunities for growth for us and this is why we looked for a partner with experience, capital and know-how. We believe that Investcorp will be instrumental in the success of our next phase of growth.

“Our enhanced equity base combined with Investcorp’s strategic support will help accelerate Automak’s growth in Kuwait and abroad. We see tremendous potential in corporate, oil and individual leasing sectors in Kuwait and other markets in the MENA region,” he added.
 

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