Utico secures $400mn investment deal with Majis Industrial Services
Utico recently announced the signing of an investment agreement with Oman's Majis Industrial Services, a government-owned entity with an investment deal value of US$400mn.
The deal makes Utico the first large water player to have four sovereign investors as its shareholders, Utico said in a statement on its website. The company made the announcement on the sidelines of the recently held World Future Energy Summit in Abu Dhabi.
White & Case provided legal advisory support to Utico and Clyde & Co to Majis Industrial Services for the deal.
“Majis’s investment is one more testament of trust from our investors in our unique business model, expertise and the tremendous growth potential of the company. It is also an endorsement of our contribution to the social and economic fabric of countries where we operate,” said Rashed Mehran al Blooshi, chairman of Utico.
He said that investment also stood out for the fact that it strengthens economic cooperation between Oman and the UAE. “Investment by the government of Oman through its sovereign funded entity in an Emirati utilities company also complements economic relations between the two countries,” Blooshi added.
Ahmed Mazroui, CEO of Majis Industrial Services said, “We are very excited about the prospects the deal brings to the table and along with Utico we hope to work together to develop many projects and build on each other’s strength. The deal is supposed to close in the first quarter 2019.”
Utico said it has become the first large water player to secure such a large corpus of sovereign funding. In the last three years the total deal of investments secured by Utico is about US$740mn, which includes sovereign investments from the governments of Saudi Arabia, Bahrain and Brunei as well as Spain’s utility leader Grupo Cobra.
Majis Industrial Services was established in 2006 to provide water services to Oman’s growing industrial port and other special economic areas in Sohar.