Abu Dhabi-based Waha Capital has acquired a minority stake in Dubai’s Petronash Holdings in a $88 million transaction.
The deal includes options to increase Waha Capital’s stake in the oilfield services and manufacturing company to up to 50%.
As part of the latest transaction, Petronash will set up research and development centres in Chennai, India and Dammam, Saudi Arabia in a bid to drive innovation and technology integration.
Petronash, which has $200 million projected revenue in 2018, boasts plants in Dubai, Houston and Dammam, as well as a manufacturing hub in Chennai.
“For Waha Capital, this is a hugely promising investment that pushes forward our strategy of making focused direct investments in highly cash-generative companies in our areas of expertise, which include energy, technology and financial services,” said Michael Raynes, CEO of Waha Capital.
“Petronash is a mature and very successful business and we are confident of the company’s high potential for further growth, given its leading position in its industry, and its investment in technology and innovation,” he added.
Petronash Chairman U M Rao said the company will now focus on Russia, North Africa and other regions, while making the most of Waha Capital’s strong regional network.
Some of the Dubai company’s key customers include national oil firms from the public sector, such as Saudi Aramco, ADNOC, KOC, PDO and BP among others.
Waha Capital is investing in highly cash-generative companies using technology to deliver rapid growth. Last year, it acquired a stake in fintech firm Channel VAS, which supplies micro-loans through mobile phones in several countries across Africa, Asia and Europe.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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