APICORP acquires TAQA stake

APICORP acquires TAQA stake
Updated 28 December 2013
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APICORP acquires TAQA stake

APICORP acquires TAQA stake

The Arab Petroleum Investments Corporation (APICORP) said it has acquired a 5.62 percent equity stake in the Saudi-based Industrialization and Energy Services Company (TAQA) from Arabian Pipes Company (APC).
The Saudi government owns a 17 percent stake in APICORP.
APICORP is now the joint third largest shareholder in the company with over 11.2 million shares.
A closed joint stock company established in 2003 as part of Saudi Arabia’s privatization strategy,
TAQA is owned 45 percent by the Saudi government, with the reminder owned by several institutional, private and industrial investors.
The Arab Petroleum Investments Corporation is the multilateral development bank owned by the Organization of Arab Petroleum Exporting Countries (OAPEC).
Ahmad bin Hamad Al-Nuaimi, APICORP’s CEO and GM, said: “The TAQA equity acquisition is a perfect fit for our investment strategy.”
He said: “It is consistent with our commitment to supporting prominent Arab energy companies that show significant growth and value-creation potential. At the same time, it dovetails well into our objective of diversifying into sectors that provide vital support services for the hydrocarbon industry. TAQA has achieved robust growth over the last decade and its development has also brought tangible economic benefits.”
“As part of our mandate, we are keen to invest in companies like TAQA that play a crucial role in helping Arab countries maximize efficiencies in the energy value chain. As the company gears to expand its operations, we look forward to supporting its growth along with other key shareholders.”
APICORP has a long and successful track record in participating as an equity stakeholder in companies in the Arab world.
Riyadh-based TAQA has a substantial portfolio of subsidiaries and affiliates established in joint ventures with global leaders. These companies are today leading operators in fields such as drilling, geophysical services, oilfield services, seamless pipe manufacturing, industrial gases, and oil and gas offshore platform fabrication.
Joint ventures in which it is a majority shareholder include Arab Drilling Company (ADC), one of Saudi Arabia’s largest drilling companies, established in alliance with Schlumberger; Arabian Geophysical & Surveying Company (ARGAS) formed in partnership with CGG Veritas; and Al-Jubail Energy Services Company (JESCO), the GCC region’s first seamless pipes manufacturing company.