Truck Oman employees now partners in the company.
TruckOman gives free shares to employees
MUSCAT, December 11, 2014
Truck Oman, a leading oil and gas logistics firm in the sultanate primarily focusing in specialist logistics, has awarded its group employees free shares donated by its main shareholder Al Yousef Group in a first step towards transforming the company into a publicly-listed company.
It is the first time an Omani-owned company has earmarked and allocated five per cent of shares to employees free of cost.
The distribution of the shares took place at a ceremony held under the auspices of Ali bin Masoud Al Sunaidy, minister of commerce and industry, at Crown Plaza Hotel on Monday.
The event was hosted by Mohamed bin Musa Al Yousef, group chairman of Al Yousef and TruckOman Group and was attended by members of the board of directors and employees.
Under the theme of 'Let's work for Oman and jointly share the prosperity', the donation of 3 million shares - valued at RO1.05 million ($2.72 million) independently by an investment bank, marks a new chapter not only in the history of the company that has a legacy spanning over three decades, but also in the Sultanate of Oman.
In order to create an institutional framework within which TruckOman Group employees can own shares, a closed joint stock company is being formed for them under the name of Mazaya TruckOman, and it will be registered at Muscat Securities Market to facilitate the sale, purchase and transfer of shares.
The three million shares donated by the Al Yousef Group for the benefit of the employees will form the capital of Mazaya, said a comoany statement.
The biggest challenge lies in encouraging employees to continue to hold shares, thereby propagating the concept of partnership between employees and the company resulting in employees realising the fruits of their labour through annual dividends and benefiting from the growth in the assets and the business endeavours of the group.
Therefore, the idea of setting up Mazaya TruckOman is an attempt to educate staff on the importance of investment and the retention of their shares.
Employees will be motivated to continue to hold shares by giving them proportionately more shares each year for a period of five years for those employees who continue holding the initial shares. However, a clear mechanism has been laid down for those who want to sell their shares.
"I am proud of the commitment and dedication of our employees that has enabled us to be the logistics provider of choice to the oil and gas sector in Oman. From today, they are partners in the success story that is TruckOman" said the chairman of Al Yousef Group and TruckOman Oil and Gas Services.
Established in 1978, TruckOman has evolved to be a diversified group with several subsidiaries primarily focusing on the oil and gas sector.
The group employs over 420 Omani employees and a large number of expatriates, a significant number of whom have completed over 10 years of service with the group.
Headquartered in Muscat, the company primarily focuses in heavy lift and transport, Infield rig and camp movements, mobilisation of all oilfield equipment from ports to final location, general transportation and line haulage, warehousing activities including chemicals and temperature controlled storage and operation of pipe and chemical yards with radial transport services.-Reuters