StanChart unit buys into UAE’s Topaz Energy
Dubai, August 20, 2014
Standard Chartered Private Equity (SCPE) announced today (August 20) the acquisition of a minority stake in UAE-based Topaz Energy and Marine (Bermuda), a leading offshore support vessel operator, through an equity investment of $75 million.
The proceeds will be used to fund Topaz’s expansion plan, which includes the acquisition of vessels for existing business and geographical expansion. SCPE will be granted a board seat and will provide strategic insight towards delivering on Topaz’s global business and capital market ambitions.
This is the first investment in the Mena energy sector for SCPE, the first private equity transaction in the UAE and the fourth investment overall in the region.
Taimoor Labib, regional head of Mena Private Equity and head of Global Private Equity Portfolio Management at SCPE said: "We are proud and humbled to have been chosen as strategic partners by one of the leading companies in the UAE and the Middle East, with a global reputation within the oil and gas space.
“Topaz’s high quality management team, committed shareholder base and independent governance are admired by many in the region. We look forward to working with our partners at Topaz and helping the company achieve its long-term strategic objectives.” Labib will be joining the Topaz Board on behalf of SCPE, a statement said.
Samir Fancy, chairman of Topaz said: “Topaz has been a target of much investor interest; however, our choice of partner was logical given the deep multi-decade relationship between Topaz and Standard Chartered Bank.
“This partnership between Renaissance and one of the leading emerging markets private equity houses speaks volumes in terms of the value of Topaz and its tremendous potential. The diversification of our sources of capital puts Topaz firmly on the path to eventual independence as a world-class OSV business, as envisaged by Renaissance Services’ Group strategy.”
René Kofod-Olsen, CEO of Topaz said: “Joining forces with a private equity powerhouse like SCPE will enable Topaz to truly accelerate the realization of our strategic plan. We have now enhanced the foundation from which we can deliver our ambition for further geographical diversification and growth through both organic expansion and acquisitions. SCPE is investing because of its firm belief in the Topaz story, the team and our strategy, and we look forward to working together in close partnership.”
Topaz is headquartered in the UAE and operates a fleet of 99 offshore support vessels (OSVs) throughout the Middle East and the Caspian with a growing presence in West Africa. Topaz’s parent company is Renaissance Services, an Omani company listed on the Muscat Securities Market.
SCPE is the private equity arm of Standard Chartered Bank. SCPE, which focuses on companies whose principal operations and management are located in Asia, Africa or the Middle East, invests in firms in need of expansion capital or acquisition finance, and in management buy-outs. – TradeArabia News Service