KCIC, a Kuwaiti investment firm, has announced that the company and a consortium of investors have acquired a Philippine-based engineering & construction company Atlantic Gulf and Pacific for $40 million.
KCIC's had also invested recently in an enhanced oil recovery services firm in China.
KCIC is listed in the Middle East Investors Directory with the code BFD85.
Their full press release follows
KCIC, an investment firm specializing in investments in Asia, today announced that the company and a consortium of investors have acquired a Philippine-based engineering and construction company Atlantic Gulf & Pacific (AG P) for PHP1.75 billion (equivalent to USD39.7 million).
The consortium comprised of high profile international and Filipino investors, including key investors with a wealth of experience in the oil and gas industry and international finance.
AG P is one of the oldest and most experienced engineering and construction companies in Asia. It is a leader in steel fabrication and modular construction market, and has two main divisions: Heavy Fabrication and Overseas Manpower. The company has a global footprint and serves some of the most important clients in the world's energy and mining sector, including:
- Aramco Overseas Corporation (K.S.A.),
- Kawasaki Heavy Industries, Ltd. (Japan),
- Kellogg Brown & Root (U.S.),
- Krupp Industrieteknik GmbH (Germany),
- Mitsubishi Heavy Industries, Ltd. (Japan),
- Esso Production Malaysia, Inc.,
- Hitachi Works, Hitachi Ltd. (Japan),
- Technip (France), and
- Snamprogetti S.p.A. (Italy)
KCIC Managing Director Ahmad A. Al-Hamad said: "This acquisition is a major milestone in KCIC's strategic investment plans. It represents the first private investment in Emerging Asia's energy sector and the first investment in the Philippines. We look forward to working closely with AG&P's management in helping them penetrate the growing oil and gas sector in the Gulf and the broader region."
The acquisition comes in line with KCIC's strategy to invest in the growing energy sector in Asia, and AG&P is well positioned to provide a direct access to the sector, which requires new infrastructure and additional services to support its growth. AG&P has high exposure to the sector, servicing global oil and gas firms in four key Asian countries and across the globe.
The acquisition follows KCIC's strategic investment in an enhanced oil recovery (EOR) services company in China, which has recently been listed on the stock exchange. The company has patented and exclusively licensed EOR technologies enabling it to benefit from Chinese oil majors' increased need for improving oil output at aging fields.
On the Philippines economy:
- 2010 growth rate: The Philippines is the second-fastest growing economy among the "ASEAN-5" in 2010, with a forecasted growth rate of 7%
- 2011 growth rate: The International Monetary Fund expects the Philippines economy to grow at 4.5%
- Economy position: In Asia (excluding Japan), the Philippines ranks as the 8th biggest economy (with an expected total output of USD168 billion in 2010) and is the fourth most populous nation (with about 92 million people according to 2009 estimates)
- Rising foreign investments: The Philippines witnessed rising foreign investments in recent years (up 25% since 2007), due to the country's economic strength and high growth potential
- Economic stability: The Filipino government has taken important steps towards economic and political stability since the Asian crisis in 1998. Today, the country enjoys low inflation, stable interest and foreign exchange rates, and a relatively high output growth (since 2001, economic growth has averaged 4.5% per year) in a politically stable environment.
- Solid fundamentals: The economy weathered the 2008-2009 global recession better than its regional peers due to a minimal exposure to securities issued by troubled global financial institutions; a resilient (nearly 75% of the output comes from consumption) domestic demand, supported by large remittances (a vital source of income for the Philippines, remittances constitute nearly 10% of total output); a lower dependence on exports (a stark difference if compared to other Asian economies which are largely export dependent); and a growing business process outsourcing industry. Main exports are semiconductors, electronic products and textiles, while main imports are fuel and other raw materials.
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