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Swicorp Joussour Company Invests Over 20% of SAR 2.67 Billion in Total Committed Capital.

Swicorp Joussour Company, a Saudi Joint Stock Company capitalized at SAR 2.67 billion (US$ 712 million) launched by Swicorp, announced that it has completed SAR 546 million (US$ 149 million) in transactions across the greater MENA region. In addition, the Swicorp Joussour Board of Directors recently approved three additional transactions to be executed in the coming months, totaling an additional SAR 768 million (US$ 209 million) The transactions are aligned with the Company's focus on energy and energy-intensive industries that leverage the competitive advantages of the region.

"Since the launch of Swicorp Joussour, we are on track to invest over SAR 1.3 billion (US$ 354) of the Company's capital in several quality transactions spanning the realm of the energy and energy-intensive sectors. We are confident that we will continue to source and execute additional transactions in the coming months," commented Mr. Nabil Triki, Managing Director and Head of Private Equity at Swicorp and Managing Director at Swicorp Joussour.

Swicorp Joussour Acquires Controlling Stake in Glass Fiber Plant

Swicorp Joussour Company has acquired a controlling stake in Eastern Petrochemicals Company (EPETCO), a new company which is poised to become a regional leader in glass fiber reinforcements and composites. Fiberex Glass Corporation of Canada, the world leader in the production and marketing of ECR glass fibers, is providing proprietary technology and exclusive advanced process rights to EPETCO in Saudi Arabia. A significant portion of the EPETCO production will be supplied to Fiberex for its growing customer base.

Headquartered in Riyadh and with its flagship plant in Jubail, EPETCO will be the leading glass fiber reinforcement manufacturers in the region. The initial cost of EPETCO's flagship plant is estimated at US$ 180 million with a target capacity of 60,000 MTPA. This plant will be one of the largest ECR glass fiber plants in the world. Plant start-up is scheduled for the second half of 2009.

With a global market of 4 million MTPA that is increasing at favorable rates per annum, plans to increase EPETCO's production to 120,000 MTPA are nearing completion. EPETCO's glass fiber plant will benefit from low production costs due to the availability of quality raw materials in the proximity of the Kingdom coupled with low cost energy. EPETCO will serve the growing regional market driven by the significant demand for composites, especially for infrastructure applications."We are very excited about this opportunity to produce ECR glass fibers in the GCC on such a large scale" commented Mr. Faysal Hamza, Swicorp Joussour Executive Director. Mr. Hamza added: "As an investor, we believe that the glass fiber composites industry has the right ingredients for success in the MENA region such as low cost production base, availability of competitively priced raw materials, surging demand and pricing, both in the region and globally."

Swicorp Joussour Acquires Stake in Egyptian Refining Company

Swicorp Joussour has acquired a strategic equity stake and has been given Board representation in a greenfield refinery to be built in the Mostorod area of Greater Cairo, as part of a larger consortium led by Citadel Capital which also includes Egyptian and Arab investors as well as Egyptian oil companies.

The refinery is designed and configured to maximize the production of distillates such as diesel and gasoline through the cracking of heavier atmospheric residue which is supplied from the neighbouring Cairo Oil Refining Company under a long term supply contract. Total production capacity of the facility is expected to be 5 million tons, with all of the production of light petroleum products being sold under a long-term off-take agreement for consumption by the growing Greater Cairo market. Plant start-up is expected in the fall of 2011 with a total project cost estimated at SAR 9.3 billion.

The Engineering, Procurement and Construction (EPC) contract for a complete hydro-cracking/coking facility and ancillary units has been signed with a consortium consisting of GS Engineering & Construction (South Korea) and Mitsui & Co. (Japan). In addition, ERC has successfully obtained all necessary regulatory approvals required for the project.

Several of the largest international and local banks are expected to be part of this large debt financing plan, in addition to export credit agencies. No significant impact from the recent movement in the credit market is expected on ERC's ability to attract a competitive debt financing package.

According to Mr. Hamza, "The refinery's configuration, adjoining agreements and experience of the development group will ensure that the project will benefit from unique competitive advantages and provide significant value to both investors and to Egypt."

Swicorp Joussour Invests in Glass Manufacturing Company: Ghani Glass Limited

Swicorp Joussour has acquired a strategic equity stake in Ghani Glass Limited, a publicly listed glass manufacturer with a dominant market position in container and float glass in Pakistan. The company operates through three factories across the country and serves all the key multinationals.

The company recently entered into a joint venture with the Ras Al-Khaimah government to establish a pharmaceutical glass manufacturing plant in the UAE. The Ras Al-Khaimah plant is expected to be commissioned by May 2008.

Ghani Glass is ideally positioned to benefit from Pakistan's increased economic activity, including a booming housing market and an upward trend in the purchasing power of the citizens. The company has historically been very profitable and financially sound and has a strong and very dedicated management team.

"Ghani Glass is an ideal platform for Joussour to develop and acquire glass projects in the MENA and South Asia regions. Joussour's financial and strategic muscle combined with Ghani Glass' technical expertise should be a recipe for success," says Mr. Faysal Hamza, Swicorp Joussour Executive Director.

About Swicorp

Swicorp is a Financial Advisory, Private Equity and Principal Investment firm which provides a comprehensive range of services to domestic and international businesses active in the Middle East and North Africa (MENA). Founded in Switzerland in 1987, Swicorp has its headquarters in Riyadh, and offices in Jeddah, Dubai, Tunis, Tehran and Geneva. With over twenty years of experience in Mergers & Acquisitions, Private Equity and Principal Investment across the MENA region, Swicorp has established itself as one of the leading players in the growing investment banking, private equity and principal investment sectors of the region.

Swicorp's Private Equity activity comprises three private equity vehicles, with investor commitments totaling over US$ 1 billion.

Joussour is a private equity vehicle launched and managed by Swicorp, and structured as a Saudi Closed Joint Stock Company with an initial authorized capital of SAR 2.67 billion.

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Publication:Albawaba.com
Date:Jan 27, 2008
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