A group led by fund manager Ashmore Group plc has sold a Saudi waste management company to a group of Gulf private equity firms, one of the buyers confirmed on Wednesday, with banking sources valuing the deal at around $300 million.
Jeddah-based Global Environmental Management Services (GEMS) collects, handles and disposes of petroleum and chemical wastes and is also involved in waste water treatment in the kingdom.
Saudi Arabia’s Jadwa Investment confirmed in a statement it had bought into the company through its Jadwa Waste Management Opportunities Fund. It did not disclose its investment partners nor the value of the acquisition.
However, two banking sources said Dubai-based Fajr Capital was also involved as a buyer and that the price was around $300 million.
Fajr Capital declined to comment, as did London-based Ashmore.
Sources told Reuters in November that emerging markets-focused Ashmore had put its 65 percent stake in GEMS up for sale and was in negotiations with two potential buyers.
Jadwa Investment Chief Executive Tariq al-Sudairy said GEMS was “in a sector with strong growth potential that is underpinned by Saudi Arabia’s global leadership position in the petrochemical production sector”.
Ashmore began investing in GEMS in the fourth quarter of 2008 and its holding rose over several rounds of fundraising.
Bank of America-Merrill Lynch was advising Ashmore on the transaction, sources said in November.
Follow us on
