StanChart stake in UAE’s Topaz

Standard Chartered Private Equity (SCPE) has acquired minority stake in Topaz Energy and Marine (Bermuda), an offshore support vessel operator, through an equity investment of $75 million (Dh275m), the company said in a statement on Wednesday.

Topaz is headquartered in the UAE and operates a fleet of 99 offshore support vessels (OSVs) throughout the Middle East and the Caspian with an existing, growing presence in West Africa.

Topaz’s parent company is Renaissance Services, an Omani company listed on the Muscat Securities Market.

The proceeds will be used to fund Topaz’s expansion plan, which includes the acquisition of vessels for existing business and geographical expansion. SCPE will be granted a board seat and will provide strategic insight towards delivering on Topaz’s global business and capital market ambitions.

This is the first investment in the Middle East and North Africa energy sector for SCPE, the first private equity transaction in the UAE and the fourth investment overall in the region.

SCPE invests in companies with proven cash flows, backed by best in class management teams in flexible private equity or mezzanine structures.

Taimoor Labib, Regional Head of Mena Private Equity & Head of Global Private Equity Portfolio Management at SCPE, said: "We look forward to working with our partners at Topaz and helping the company achieve its long-term strategic objectives”.

Labib will be joining the Topaz Board on behalf of SCPE.

Samir Fancy, Chairman of Topaz, said: “Bringing in institutional funds is a key part of the Board’s strategic capital markets plan. Topaz has been a target of much investor interest; however, our choice of partner was logical given the deep multi-decade relationship between Topaz and Standard Chartered Bank. This partnership between Renaissance and one of the leading emerging markets private equity houses speaks volumes in terms of the value of Topaz and its tremendous potential. The diversification of our sources of capital puts Topaz firmly on the path to eventual independence as a world-class OSV business, as envisaged by Renaissance Services’ Group strategy.”

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