- Today's Hot Chat Topics
- Member Benefits
- Manage your personalised Watchlist.
- Set up an online Virtual Portfolio.
- Participate in Share Chat.
- See more trades and director dealings.
- Play the Fantasy Share Trading Game.
Share:
HomeShare PricesStock PickerFinancial DiaryUK IndicesUK Industry SectorsCompany LookupShare RisersShare FallersBroker RatingsFinance GlossarySMS ServicesShare ChatFinance NewsBlogsLive PricesShares BookshopFinance ToolsMembers
Latest Share Chat
Lamprell Share News (LAM)
Share News for Lamprell (LAM)
| Share Price: 152.50 | Bid: 152.50 | Ask: 153.00 | Change: 0.00 (0.00%) |  | ||||||
| ||||||||||
Talks for $500 mln Gulf Marine sale collapse- sources
Sun, 10th Jun 2012 08:17
By Mirna Sleiman
DUBAI, June 10 (Reuters) - A potential $500 million sale of a 79-percen
They said that talks between seller Gulf Capital, a regional private equity firm with around $1 billion in assets and two bidders shortlisted from over a dozen suitors had ended, in a fresh blow to private equity exits in the region.
'There was a buy-sell price gap and the buyers could not get the financing sorted out. American and European investors were the final bidders but talks are now back in ground zero,' said one of the sources.
Gulf Capital's Chief Executive Karim El Solh confirmed that there were impediments to a sale but added that the firm had not given up on its disposal plans.
'The size and profitability of GMS became so big that many of the interested buyers cannot afford it. We're still open for a sale process,' he told Reuters on Sunday.
The private equity firm is also exploring a potential initial public offering for Gulf Marine in a major stock market like London or Singapore in two years' time, said El Solh.
'Our third option is to do a leveraged recapitalisation so we borrow against the company and distribute dividends to shareholders. That's one step leading to a blockbuster global IPO,' said El Solh.
El Solh had told Reuters in an interview in April that the company expected to raise more than $500 million from the sale of its GMS stake before the end of June.
The failed discussions underline the difficulties companies face in raising funds for acquisitions as banks across Europe and the United States retrench due to the euro zone debt crisis and the prospect of increased capital requirements.
LITMUS TEST
Credit Suisse, which is also an investor in Gulf Capital's fund, was the advisor on the sale, seen as a litmus test for more private equity exits from the region.
J.P. Morgan Chase was brought in at a later stage by Gulf Capital to arrange financing and several local lenders were also approached but in vain, one of the sources said.
Private equity funds in the Middle East are under pressure to exit investments and provide returns to their investors who piled in money to the region during the boom years of 2004-2007.
Some 218 investments were made by regional private equity funds between 2004 and 2009, of which the funds have only exited 14, according to a 2011 report by the Wharton School of the University of Pennsylvania and Saudi private equity firm Amwal AlKhaleej.
Gulf Capital had acquired the stake in GMS in 2007. GMS' clients include prominent oil firms such as Saudi Aramco, Qatar Petroleum and Abu Dhabi National Oil Company.
GMS's EBITDA (earnings before interest, tax, depreciation and amortisation) has grown from $10 million in 2007 to $100 million last year, according to El Solh.
Gulf Capital owns stake in firms such as healthcare chain Techno Scan and water engineering firm Metito Holdings, according to its website.
Last year, the company and Amwal AlKhaleej sold their stakes in Maritime Industrial Services in a $336 million deal to Lamprell Plc in one of the rare private equity exits from the region.
Regional private equity firm Abraaj Capital also sold its stake in Turkish hospital group Acibadem to Malaysia's state-linked investor fund Khazanah Nasional.
(Additional reporting by Dinesh Nair; Editing by Sitaraman Shankar) Keywords: EMIRATES GULFMARINE/SALE
(Mirna.Sleiman@thomsonreuters.com)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
By Mirna Sleiman
DUBAI, June 10 (Reuters) - A potential $500 million sale of a 79-percen
t stake in Gulf Marine Services (GMS) by its Abu Dhabi-based private equity owner has collapsed due to financing issues and differences over valuation, three sources said.
They said that talks between seller Gulf Capital, a regional private equity firm with around $1 billion in assets and two bidders shortlisted from over a dozen suitors had ended, in a fresh blow to private equity exits in the region.
'There was a buy-sell price gap and the buyers could not get the financing sorted out. American and European investors were the final bidders but talks are now back in ground zero,' said one of the sources.
Gulf Capital's Chief Executive Karim El Solh confirmed that there were impediments to a sale but added that the firm had not given up on its disposal plans.
'The size and profitability of GMS became so big that many of the interested buyers cannot afford it. We're still open for a sale process,' he told Reuters on Sunday.
The private equity firm is also exploring a potential initial public offering for Gulf Marine in a major stock market like London or Singapore in two years' time, said El Solh.
'Our third option is to do a leveraged recapitalisation so we borrow against the company and distribute dividends to shareholders. That's one step leading to a blockbuster global IPO,' said El Solh.
El Solh had told Reuters in an interview in April that the company expected to raise more than $500 million from the sale of its GMS stake before the end of June.
The failed discussions underline the difficulties companies face in raising funds for acquisitions as banks across Europe and the United States retrench due to the euro zone debt crisis and the prospect of increased capital requirements.
LITMUS TEST
Credit Suisse, which is also an investor in Gulf Capital's fund, was the advisor on the sale, seen as a litmus test for more private equity exits from the region.
J.P. Morgan Chase was brought in at a later stage by Gulf Capital to arrange financing and several local lenders were also approached but in vain, one of the sources said.
Private equity funds in the Middle East are under pressure to exit investments and provide returns to their investors who piled in money to the region during the boom years of 2004-2007.
Some 218 investments were made by regional private equity funds between 2004 and 2009, of which the funds have only exited 14, according to a 2011 report by the Wharton School of the University of Pennsylvania and Saudi private equity firm Amwal AlKhaleej.
Gulf Capital had acquired the stake in GMS in 2007. GMS' clients include prominent oil firms such as Saudi Aramco, Qatar Petroleum and Abu Dhabi National Oil Company.
GMS's EBITDA (earnings before interest, tax, depreciation and amortisation) has grown from $10 million in 2007 to $100 million last year, according to El Solh.
Gulf Capital owns stake in firms such as healthcare chain Techno Scan and water engineering firm Metito Holdings, according to its website.
Last year, the company and Amwal AlKhaleej sold their stakes in Maritime Industrial Services in a $336 million deal to Lamprell Plc in one of the rare private equity exits from the region.
Regional private equity firm Abraaj Capital also sold its stake in Turkish hospital group Acibadem to Malaysia's state-linked investor fund Khazanah Nasional.
(Additional reporting by Dinesh Nair; Editing by Sitaraman Shankar) Keywords: EMIRATES GULFMARINE/SALE
(Mirna.Sleiman@thomsonreuters.com)
COPYRIGHT
Copyright Thomson Reuters 2012. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
STOCKS NEWS EUROPE-UK small caps climb 0.2 percent
The FTSE Small Cap index gains 0.2 percent, outperforming the wider market, with both the blue chips and the midcaps trading flat.Lamprell drops 5.6[Mon 09:49]
Rig maker Lamprell says debt restructuring on track
LONDON, May 17 (Reuters) - Oil rig maker Lamprell said it is on track to restructure its debt and agree revised covenants by the end of June, as the[17 May '13]
UPDATE 2-Lamprell says change of focus will reverse $100 mln loss
* $105 mln 2012 loss vs $74 mln 2011 profit* Sees gradual return to profit this year* Order book at $1.3 bln, bid pipeline of $4.1 bln* No 2012 divide[21 Mar '13]
UPDATE 1-UK watchdog fines oil services co Lamprell 2.4 mln stg
* FSA's first such fine based on market capitalisation* Lamprell says settled early so it could move on (Adds more detail, company reaction)LONDON,[18 Mar '13]
Lamprell fined 2.4 mln stg by FSA
LONDON, March 18 (Reuters) - Britain's financial watchdog has fined oil services firm Lamprell 2.4 million pounds ($3.6 million) for failing to keep t[18 Mar '13]
STOCKS NEWS EUROPE-UK small caps close 0.3 percent higher
UK small caps close 0.3 percent higher, outperforming the blue chips, up 0.2 percent, but lagging the mid-caps, which gain 0.8 percent.Flybe surges 20[6 Feb '13]
STOCKS NEWS EUROPE-UK small caps index up 0.2 pct, lags blue chips
UK small caps are up 0.2 percent, lagging both the mid-caps, up 0.8 percent, and the blue chips, up 0.3 percent.Lamprell gains 8.2 percent after the e[6 Feb '13]
Oil rig maker Lamprell makes progress in debt talks
Jan 31 (Reuters) - Oil rig maker Lamprell said it had made good progress in talks with lenders to refinance its debt, and it was likely to post a 2012[31 Jan '13]
