Unicorn sells key stake in US services firm
Manama, August 25, 2011
Unicorn Investment Bank (Unicorn) has sold its investment in Victron, a speciality provider of high-mix, complex electronics manufacturing services based in Fremont, California.
Unicorn acquired an 80 per cent equity stake in Victron in December 2007.
The bank has sold its stake to OnCore, a leading US-based EMS company.
The sale of Victron follows Unicorn's recent decision to exit the US market to focus on the bank's core markets in the GCC, Malaysia and Turkey.
The bank also recently successfully exited its investment in Sun Well Service, a leading regional workover services provider to oil and gas exploration companies in the US.
The move is part of the bank's strategy to concentrate its investments in the Middle East.
'We are pleased to have successfully sold our stake in Victron, given the prevailing global market conditions, following a holding period of over three years,' said Unicorn chairman Yousef A Al Shelash.
'Going forward, our private equity division will continue to target businesses in the oil and gas services, industrial services, logistics, agri-business and healthcare sectors,' Mr Al Shelash said.
'Our focus will be on private companies operating in the GCC and Middle East and North Africa regions, including Turkey,' he added.
Unicorn recently announced its results for the first half of 2011, reporting a net profit of about $3.1 million.
Its return to profitability follows a major restructuring initiative undertaken in the latter half of 2010 and the first half of 2011.
'Although the global operating environment remains extremely challenging, we are confident that the strong corrective measures that we have taken to strengthen the bank, including major de-leveraging of our balance sheet, a significant cut in our operating expenses and realignment of bank's operating strategy, leave Unicorn in a strong position to report profitability in 2011,' Al Shelash added.-TradeArabia News Service