Swicorp buys into top Algerian fuel distributor
Riyadh, October 12, 2008
Swicorp, a diversified financial services firm operating through extensive offices across the Mena, has announced a new partnership with Petroser, the leading privately-held distributor of fuel and related products in Algeria.
Under the agreement, Intaj Capital, Swicorp's $250 million private equity vehicle focusing on sectors driven by growth in consumer demand in the Mena region, has provided funding to allow Petroser to expand into two new lines of business.
Since its inception in 1999, Petroser has developed into the leading privately held distributor of fuel and related products, with a network of petrol stations, an extensive storage and logistics platform.
It has an exclusive licensing agreement with global energy group BP, under which Petroser distributes BP lubricants throughout Algeria, said a company official.
Looking ahead, Petroser's ambitious plans include an investment in a new lubricant blending facility to manufacture lubricants under BP license and an investment in a new bitumen storage and blending unit to manufacture bitumen derivatives.
Leveraging on its longstanding presence in North Africa and thorough understanding of the Algerian market, Swicorp recognised the potential for significant growth in the fuel and related products sector in Algeria.
Commenting on the announcement, Nabil Triki, managing director and head of private equity at Swicorp, said, 'We are very pleased to have executed yet another transaction in Algeria, which clearly ranks among the most promising growth markets in the Mena region.'
'We look forward to working closely with the senior management team of Petroser to leverage what we believe is a unique opportunity in this sector, and provide the support required to achieve the company's ambitious expansion and diversification plans,' he added.
Abdelmalek Sahraoui, Petroser CEO, said the company has the potential to drive and benefit from high levels of growth in the fuel and related products distribution sector in Algeria.
'By extending our partnership with BP beyond distribution, and bringing in Intaj as a partner, Petroser now has the means required to take advantage of the current market opportunity,' he added.-TradeArabia News Service