Waha Capital acquires stake in oilfield services company Petronash

Waha Capital has acquired a minority stake in oilfield services company Petronash in a $88 million deal.

The transaction includes options to raise Waha Capital’s stake in the Dubai company to 50 per cent as well as for the establishment of research and development centres in the southern Indian city of Chennai and Dammam in Saudi Arabia. Waha Capital, which counts Mubadala Investment Company among its shareholders, did not disclose the size of the minority stake that was bought.

The development would involve the expansion of the company’s service and product lines with a view to widen its customer base.

The deal would enable Waha Capital to make “focused direct investments in highly cash-generative companies in our areas of expertise, which include energy, technology and financial services,” said Michael Raynes, the company’s chief executive.

Petronash, which supplies engineering products for the oil sector, has projected $200m in revenue for this year.

The company counts Saudi Aramco, Abu Dhabi National Oil Company, Kuwait Oil Company, Petroleum Development Oman as well as BP as some of its clients. The company said it had a “strong order book of current and future projects” with potential to expand further in the region.

After consolidating its regional expansion, Petronash would look to focus on working in the hydrocarbons sector in Russia, North Africa and other regions, according to the company’s chairman UM Rao.

Petronash has plants manufacturing specialised oilfield equipment in Dubai, Houston and Dammam besides a centralised design, engineering and component-manufacturing hub in Chennai.