EuroMena II, an active private equity fund in the Middle East, said it has invested $20 million in Egypt-based Sakson Petroleum Services, a leading oil and gas drilling service provider in the region, to boost its capital and help fund its expansion plans.

A major player in the region, Sakson Petroleum Services has several onshore drilling projects in Iraq, Algeria, Tanzania, Kenya and Somalia.

Commenting on the move, EuroMena II managing director Romen Mathieu said the company's partnership will enable Sakson to pursue its ongoing growth and expansion plans.

“EuroMena is contributing to achieve this objective by strengthening the group’s presence within the region, whether through the funds injected in Sakson’s capital or through the fund management’s active involvement on the board of directors and the use of the team’s extensive network and experience to further develop the company’s infrastructure and administrative, financial and legal tools,” he stated.

Mathieu said this investment would be the fourth deal executed by EuroMena II with one to two future investments remaining in order for the fund with a size of $100 million to be fully invested.

According to him, preparations are underway for the launch of EuroMena III, the fourth private equity fund by the Capital Trust Group in the region.

This comes as a result of the Group’s numerous successful exits and proven track record.

'EuroMena III is expected to reach a size of $200 to 300 million while continuing with the strategy started by EuroMena I and II, which is investing in high-growth sectors in the Mena region with the objective of creating regional leading groups,' said Mathieu.

Senior investment manager Karim Burhani, said, “EuroMena II has operated under extremely difficult economic and political circumstances on both a regional and international level. Still, it was able to weather the economic volatility and prove its ability to spot promising investment opportunities.”

He pointed out that EuroMena II had diversified its investments and focused on defensive sectors, such as healthcare and oil services, in addition to resilient sectors such as banking.

The fund also invested in the retail sector through a flagship brand with a strong market share, he added.

Sakson Petroleum chairman Chukri Sakkal said the partnership with EuroMena II was based on 'the team’s excellent reputation within the market, which has been proven throughout the due diligence and negotiation period.'

'The EuroMena team is fully hands on and has turned this transition into a smooth and viable process due to their effective involvement to understand the business and align our growth strategies,' he added.

General manager Amr Farrag said Sakson was active in several African nations including Tanzania, Kenya, Somalia, Algeria and Iraq, which are among the fastest growing oil and exploration territories in the world.

'We are also keen to enter new markets including Libya and Gulf countries,' he added.

Sakson Petroleum has a secured project pipeline of around $100 million for the next two years.-TradeArabia News Service