Waha Maritime acquires major stake in Abraaj unit

Abu Dhabi’s Waha Capital has entered into a strategic partnership with Dubai’s Abraaj Capital by acquiring a major stake in Abraaj’s Gmmos Group.

Waha, an Abu Dhabi Securities Exchange-listed holding company, has recently signed an agreement with Abraaj for its Waha Maritime subsidiary to acquire 49 per cent stake in Gmmos Group, a major regional industrial group operating in marine, oil and gas and crane-hire sectors the Gulf and Caspian markets. “Under the terms of the agreement, Al Waha Maritime has acquired a 49 per cent stake in Gmmos Group – 40 per cent of the strategic investment was acquired from investors exiting from 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,” a joint official statement said yesterday.

The acquisition is the first major strategic initiative for Waha Maritime since its inception in the beginning of this year. Waha Capital unveiled a strategy for diversified business growth in February this year when it announced its transformation from a single-business company into a holding company with four sector-specific subsidiaries – Waha Leasing, Waha Maritime, Waha Financial Services and Waha Land. The company was also known as Oasis International Leasing before this transformation. The company also announced Dh20 billion in investments in three years.

“This acquisition is in line with our strategy to build a significant regional maritime business alongside other businesses from our base in Abu Dhabi,” said Waha CEO Samer Alhaj.

“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,” Alhaj added.

In May 2007, Abraaj Capital, together with co-investors, acquired 100 per cent of Gmmos Group, through its $500 million (Dh1.8bn) ABOF II.

Abraaj Vice-Chairman and Group CEO Arif Naqvi said: “As one of the leading suppliers to the offshore industry, Gmmos Group meets the needs of companies active in offshore exploration and development in the Gulf and Caspian regions.”