Oman sov­er­eign wealth fund buys into Span­ish man­u­fac­turer Escrib­ano

Kuwait Times - - BUSINESS -

Oman’s State Gen­eral Re­serve Fund (SGRF) agreed to buy 32.2 per­cent of Me­can­iza­dos Escrib­ano, a fam­i­ly­owned Span­ish com­pany mak­ing pre­ci­sion me­chan­i­cal com­po­nents for the aerospace, de­fense and other sec­tors, the sov­er­eign fund said yes­ter­day.

The deal is part of a drive by Oman to use its sov­er­eign fund as­sets to help diver­sify the econ­omy be­yond oil and gas ex­ports; un­der the deal, Escrib­ano will set up a lo­cal man­u­fac­tur­ing en­tity in Oman, although details were not given. SGRF will in­vest in Escrib­ano through a com­bi­na­tion of an eq­uity pur­chase from the cur­rent own­ers and a cap­i­tal in­crease to fi­nance new devel­op­ment pro­jects, the fund said in a state­ment.

An­gel Escrib­ano, pres­i­dent of the Span­ish firm, told Reuters that the com­pany’s cap­i­tal cur­rently to­talled 50 mil­lion eu­ros ($55 mil­lion) and with the new part­ner­ship, “We will be ac­quir­ing other com­pa­nies re­lated to our line of op­er­a­tions.”

The part­ner­ship aims to raise the com­pany’s cap­i­tal to 500 mil­lion eu­ros, fo­cus­ing its re­search and devel­op­ment ac­tiv­i­ties in Spain while es­tab­lish­ing man­u­fac­tur­ing op­er­a­tions in the Gulf, SGRF’s ex­ec­u­tive pres­i­dent Ab­dul­salam Al-Mur­shidi said.

“We ex­pect the busi­ness to grow by 25 to 30 per­cent ev­ery year,” he told re­porters, with­out giv­ing fur­ther fi­nan­cial details of the ac­qui­si­tion. — Reuters

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