London Stock Exchange-listed ADES International Holding – which offers oil and gas drilling, workover, and offshore production services in the Middle East and North Africa (MENA) region – is likely to be taken over by Innovative Energy Holding Ltd.
Innovative Energy Holding is a newly formed company, which will be jointly owned by the Kingdom of Saudi Arabia’s Public Investment Fund, ADES Investments Holding Ltd (ADES Investments), and Zamil Group Investment Co (Zamil Investments).
Currently, ADES Investments owns 63.9% of ADES International Holding, while Zamil Investments owns another 4.9%.
Innovative Energy has made an all-cash offer of $12.5 per share to take the ADES International entity into Saudi ownership.
Within a year of completion of the offer, the operational headquarters of the ADES International Group will be relocated to the Kingdom of Saudi Arabia.
The offer could represent an attractive opportunity for Innovate Energy to gain exposure to the oil and gas drilling and production services sector in the MENA region, and benefit from ADES International’s client relationships, predictable cash flow, significant backlog, and low-cost business model.
