DIC makes successful exit from UAE firm
Dubai, March 22, 2011
Dubai International Capital (DIC), the private equity investment arm of Dubai Holding, said it has completed a successful exit from UAE-based KEF Holdings by selling its 45 per stake in the company for a substantial profit.
KEF, a fully integrated valve manufacturer and one of the leading providers of steel castings to the oil and gas, chemical, mining and power industries, has been acquired by Tyco International, a key player in security, fire protection and flow control products.
DIC, which bought the KEF stake in September 2008 for $126 million, has now sold it for $178 million thus netting a substantial profit for DIC, alongside a partial exit by KEF founder, Faizal Kottikollon, said a top official.
David Smoot, chief executive officer of DIC said, 'The growth and international expansion that KEF has experienced under our ownership demonstrates the success of our strategy of supporting our portfolio companies on a financial and operational level.'
'Our exit strategy continues to be based on the aim of realising maximum value for our assets at the right time and this was a very attractive transaction. We thank Kottikollon for being a fantastic business partner and working together with us to create a world class company,' Smoot remarked.
Since DIC bought its stake in KEF in September 2008, the company has vertically integrated its casting operations to include valve manufacturing for the oil and gas sector.
It has also played a significant role in broadening KEF’s customer base by leveraging its own regional network of EPC contractors and regional oil companies, said Smoot.
DIC has supported KEF’s expansion plans into India where KEF established a facility for the assembly and testing of valves as well as into Malaysia by establishing a cathodic protection facility.
On the DIC move, Kottikollon said, ‘DIC has been a strong and supportive shareholder and KEF has made significant progress under DIC’s ownership.'
'During this time, I have been proud to see KEF become a world leading manufacturer of high quality, large diameter valves and flow control components. DIC has helped us transform a family-owned business into a corporate institution with the highest levels of corporate governance,' he added.-TradeArabia News Service
More Finance & Capital Market Stories
- Qatar 'most expensive country in Gulf'
- Egypt regulator sets rules for index
- Dubai Islamic eyes Kenya, Indonesia for expansion
- ADCB to buy back 3pc of its shares
- GCC insurance growth outpaces developed markets
- Bahrain 'faces budget deficit, inflation challenges'
- Global Payment Services wins key certification
- BBK unveils big India expansion plans
- Kuwait GDP growth to hit 3.5pc in 2014
- Gulf shares tumble over EM exposure cut
- GCC bonds to gain from macro-economic climate
- French Business Council Dubai members up 18pc
- Egypt economy growth seen less strong than thought
- Sharjah approves $4.2bn budget for 2014
- Saudi non-oil sector posts solid growth in Feb
- Seera total income rises to $34m
- NBAD approves 40pc cash dividends
- NBAD sees 8-10pc loan growth
- Al Basel Group launches investment arm
- Union Insurance posts $18m profit
- Oman warns banks on conflicts of interest
- Japan to lend Tunisia $480m
- 400 to join anti-laundering seminar in Riyadh
- Lebanese insurer to head Prague Club
- UAE's first REIT plans $135m IPO
- Bahrain banking industry outlook 'positive'
- New India Assurance opens Bahrain branch
- Qatar sets up mixed business incubator
- Kuwait budget spending up 8pc in April-Jan
- Thomson Reuters to host Mena IFR awards