Apicorp to exit two equity investments
Dubai, September 19, 2010
Arab Petroleum Investments Corp (Apicorp) on Sunday said it was in "mature discussions" to divest two of its key equity stakes.
The development bank -- owned by the 10-member states of the Organization of Arab Petroleum Exporting Countries (Oapec), with Saudi Arabia and the UAE each holding 17 percent stakes -- did not say what it would sell.
The bank plans to reinvest the proceeds in upstream and midstream projects in the oil and gas sectors in the Middle East and North Africa region.
"We feel it is an opportune time to initiate divestments and enter new ones that further diversify our oil and gas investment portfolio," Ahmad Bin Hamad Al-Nuaimi, Apicorp's chief executive and general manager said in a statement.
The bank, which had total assets of $4.1 billion at the end of 2009, did not say what amount it was expecting to raise from the divestment.
Apicorp, headquartered in Saudi Arabia, said about 65 percent of its equity investments and 37 percent of its loan book are allocated to the kingdom.
The lender said it expects to double its direct investment portfolio by the end of its 2010-2014 five-year plan from a value of $257 million at the end of 2006. - Reuters