Mena Fund buys UPC stake

Mena Infrastructure Fund, sponsored by HSBC, Waha Capital and Dubai International Capital, has acquired 32.8 per cent of United Power Company (UPC) $26.5 million (Dh97m) from GDF Suez.

UPC is listed on the Muscat Securities Market, with 40 per cent of its equity capital being publicly traded.

The sale was a requirement by the Omani electricity regulator for GDF Suez to divest its shareholding in UPC. Following the transaction, the $500m fund becomes the largest shareholder in UPC. The firm owns and operates a 270 mega?watt power station in Oman, the first independent power project to be developed in the Middle East with private sector participation.

The acquisition marks the fund's second investment, having acquired an equity stake in Egypt's Alexandria International Container Terminals in 2008.

"This acquisition further establishes Mena Infrastructure Fund as a leading infrastructure investor in the region," said CEO Mark Lemmon. "Oman has been a pioneer in the Middle East in achieving a significant role for the private sector in the country's utilities and infrastructure, and this transaction marks the first time that a pure financial investor has acquired an Omani infrastructure asset. Following on from the fund's earlier investment in Alexandria Container Terminal, the UPC transaction delivers a heal?thy diversity of sector, geography, and business model for our investors."

International law firm Denton Wilde Sapte acted for the acquisition.

Mena Infrastructure Fund targets a broad range of investments within the infrastructure asset class, including utilities, transportation and social infrastructure.

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