Gulf consortium buys Qatar engineering firm
Doha, October 11, 2009
A consortium, comprising institutions from Qatar and Bahrain, has announced the acquisition of Qatar Engineering & Construction Company (QCon), one of Qatar’s leading industrial engineering and construction contracting companies.
QCon is a specialist in the oil and gas, petrochemical, power and other industrial infrastructure sectors.
The transaction sees Gulf institutions including Qatar America Asia Consortium (QAAC), Bahrain-based Unicorn Investment Bank, Qatar First Investment Bank (QFIB) and The First Investor (TFI) acquire 100 per cent of QCon from Qatar Shipping.
QAAC is the co-originator of the transaction, with Unicorn acting as co-originator and arranger. The consortium formed a close partnership to structure the transaction according to Shari’ah principles. QFIB and TFI are the largest shareholders in the consortium, having each acquired a 41 per cent stake in QCon.
Established in 1975, QCon is organised along three main business lines: Engineering, Procurement and Construction (EPC); Maintenance; and Fabrication. The company has successfully executed over 1,400 construction projects in a broad range of industrial sectors.
QCon is the leading contractor in Qatar’s oil and gas sector and is also the market leader in the provision of maintenance services. The company also has dedicated facilities to carry out the fabrication of heavy off-shore structures, including a topside production facility located in Qatar’s Mesaieed Industrial City.
Commenting on the acquisition, Shaikh Ahmed Bin Mohammed Bin Jabor Al Thani, chairman of QAAC, said: “We are proud to have formed a strategic alliance with three of the region’s leading financial institutions to acquire QCon, and we are confident that the consortium will be able to add tremendous value to the company as it enters the next phase of its growth.”
Majid Al Sayed Bader Al-Refai, managing director and chief executive officer of Unicorn, said: “We are delighted to have put together a strong Consortium and to have the opportunity to partner with leading Qatari institutions to acquire QCon, an acknowledged heavyweight in the Qatar oil and gas sector.'
'Our investment in QCon marks Unicorn’s third investment in the regional energy sector in recent months and reflects our confidence in the ability of the sector to continue to drive regional economic growth,' he noted.
Abdullah Bin Fahad Bin Ghorab Al-Marri, chairman of QFIB, said: “We are pleased to be part of such a consortium. This is an important investment for QFIB in the energy sector and we look forward to working with our partners to support QCon’s expansion plans, both in Qatar and within the broader Mena region.'
'We are confident of QCon’s ability to capitalise on the future growth of the oil and gas sector and large-scale industrial projects, which will result in an increase in the demand for engineering, construction and maintenance services. QCon is well placed to take advantage of these developments to further grow its business regionally,' he observed.
Mohammed Abdulaziz Saad Al-Saad, board member of TFI, pointed out that QCon was a market leader in the Qatari contracting and maintenance sectors and was in an excellent position to grow, particularly given the company’s long experience serving the largest industries in the region: oil, gas and power.
'We look forward to working with our partners and with QCon’s highly experienced management team to support the company’s next phase of growth. We also intend to leverage the synergies with our other portfolio companies to achieve long-term growth for QCon,' he added.