Last checked at 21 Jun 2019 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014
Westminster Group Plc
('Westminster', the 'Group' or the 'Company')
New Joint Venture
Kingdom of Saudi Arabia
Westminster Group Plc (AIM: WSG), a leading supplier of managed services and technology-based security solutions worldwide, is pleased to announce that has entered into a joint venture agreement with a significant partner in the Kingdom of Saudi Arabia ('KSA' or the "Kingdom"), Hazar International ('Hazar').
Hazar has been providing products and services in a broad range of industries, particularly within the aviation sector, for over 30 years, both within Saudi Arabia and the Gulf Cooperation Council group of countries ('GCC').
Westminster and Hazar have entered into a formal shareholders agreement with a view to forming a 50.1% Group owned joint venture subsidiary, registered in Saudi Arabia, under the name Westminster Arabia ('the JV Agreement'). Under the terms of the JV Agreement the Parties have agreed to work exclusively together in the pursuit, amongst other things, of large-scale and long-term managed services security projects at KSA's ports and airports. The Parties have also acknowledged and agreed that Westminster has business interests and prospects in many counties around the world and this Agreement will not in any way affect Westminster's business outside of Saudi Arabia.
Commenting on the joint venture Westminster's Chief Executive Officer, Peter Fowler, said:
"I am delighted and honoured to have agreed terms and entered into this joint venture arrangement with Hazar International who, under their impressive Chairman, Sheikh Salman Bin Mohammed Bin Khalid Bin Hethlain, are a strong and influential partners.
"The business opportunities for Westminster's products and services within Saudi Arabia are substantial and the formation of Westminster Arabia will represent an important strategic development for the Group.
"Under the Saudi Vision 2030 Privatisation Programme, introduced by his Highness the Crown Prince Mohammad bin Salman, the government's objective is to strengthen the role of the private sector by unlocking state-owned assets by entering into Public Private Partnerships and Build-Operate-Transfer concession arrangements and outsourcing of services. This includes the country's ports and airports. These objectives are a good fit for Westminster's business model.
"Saudi Arabia's maritime network is unrivalled in the Middle East, handling a capacity of approximately eight million twenty-foot equivalent containers per year and receiving 11,000 ships annually through 10 primary harbours. Saudi ports dominate the regional transit market, handling more than 90 percent of Red Sea trade transits and 30 percent of East African trade transits.
"There are currently 28 airports in the Kingdom, six are international, nine are regional and 13 are domestic. Three of its airports are amongst the busiest in the GCC, transporting the bulk of the 82 million passengers who pass through the Kingdom on a yearly basis.
"We have already held joint meetings with both port and airport authorities within the country and further meetings are being organised. Whilst there is never certainty of timing or outcome of any such prospects, we are extremely encouraged by the opportunities this latest growth strategy offers."
For further information please contact:
Westminster Group Plc | Media enquiries via Walbrook PR |
Rt. Hon. Sir Tony Baldry - Chairman |
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Peter Fowler - Chief Executive Officer |
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Mark Hughes - Chief Financial Officer |
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S. P. Angel Corporate Finance LLP (NOMAD & Broker) |
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Stuart Gledhill | 020 3470 0470 |
Caroline Rowe |
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Walbrook (Investor Relations) |
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Tom Cooper | 020 7933 8780 |
Paul Vann | 0797 122 1972 |
| tom.cooper@walbrookpr.com |
Notes:
Westminster Group plc is a specialist security and services group operating worldwide via an extensive international network of agents and offices in over 50 countries.
Westminster's principal activity is the design, supply and ongoing support of advanced technology security solutions, encompassing a wide range of surveillance, detection, tracking and interception technologies and the provision of long-term managed services contracts such as the management and running of complete security services and solutions in airports, ports and other such facilities together with the provision of manpower, consultancy and training services. The majority of its customer base, by value, comprises governments and government agencies, non-governmental organisations (NGO's) and blue-chip commercial organisations.