UAE based firm Gulf Equity has announced plans to sell its remaining stake in Gulf Marine Services for around $600 million, according to Reuters.
The sale would represent an enormous increase on Gulf Equity’s initial investment of around $60 million.
Gulf Capital floated approximately 40% of its holding in the vessel operator on the London Stock Exchange earlier this month and plans to sell its remaining 49.7% stake in the coming two years, chief executive Karim El Solh said on Tuesday.
That could give a boost to a Middle East private equity market which has been almost frozen since the global crisis hit in 2009.
“We’ve made almost 10 times our money on this investment. That’s more than the size of the whole Equity Partners Fund,” El Solh said from his office in Abu Dhabi, referring to a $533 million Gulf Capital fund which is almost 80 percent invested over eight deals across the Gulf region.
“We’ve diluted 40 percent of our stake and will plan to sell the rest in the open market within the coming two years. The London Exchange is very liquid and will enable us to fully exit our investment smoothly,” he said.
Gulf Capital bought an 80 percent stake in Gulf Marine Services (GMS) through its GC Equity Partners II Fund in 2007, and grew the company from a UAE-based oil and gas services firm into one with operations across the Gulf region, as well as in the Middle East and Europe’s North Sea.
GMS operates self-propelled, self-elevated support vessel fleets for clients in the oil and gas sector.
Gulf Capital paid close to $60 million for its original stake according to Reuters calculations.
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