Investcorp to fit out some of its part-owned Saudi gyms for women

Investcorp acquired a 25 percent stake in 2013 in Leejam Sports, which operates fitness clubs in Saudi Arabia under the Fitness Time brand. (Courtesy Leejam Sports)
Updated 08 February 2018
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Investcorp to fit out some of its part-owned Saudi gyms for women

ABU DHABI: Bahrain-based private equity firm Investcorp is turning some of the gyms it part owns in Saudi Arabia into women-only facilities in response to surging demand, its co-chief executive said on Thursday.
The move comes as the deeply conservative kingdom embarks on a transformation that encompasses giving women more freedoms, including being allowed to drive and attend sporting events.
“Recently the regulations were relaxed to allow women gyms. There’s tremendous demand, so we are re-purposing some of our existing gyms that used to be male-only to female-only,” Rishi Kapoor told reporters on the sidelines of a business event.
Investcorp acquired a 25 percent stake in 2013 in Leejam Sports, which operates fitness clubs in Saudi Arabia under the Fitness Time brand. Around 40 of the roughly 115 existing gyms will be refitted this year to become women-only, Investcorp said.
Kapoor said Leejam was a “likely candidate” for Investcorp to consider exiting its investment, but didn’t elaborate.
Investcorp has previously considered an initial public offering (IPO) for the company, but on Thursday declined to comment on any potential IPO.
Investcorp is looking at acquisition opportunities in Saudi Arabia arising from a push to privatize the economy, with a focus on health care, including long-term care, post-acute rehabilitation and preventative care, Kapoor said.
The company is in advanced stages of merger and acquisition deals in the Gulf, the US and Europe, he said.
Each of the deals would be within the company’s targeted enterprise value — equity plus debt — of $200 million to $500 million, he added.
Investcorp, founded in 1982, is one of the oldest Middle Eastern private equity houses and is best known outside the region for listing luxury goods brands such as Gucci and Tiffany & Co.
But the company is increasingly branching out into other sectors, with Kapoor highlighting infrastructure and credit as among those where it is scouting for acquisitions.
The company aims to raise its assets under management to $50 billion in five to seven years from $22.4 billion at the end of December.
In future, more of those assets are likely to come from Asia, where the company is placing greater focus since opening an office in Singapore last year.
Currently, around 35 percent of its assets are in the Gulf, with a similar proportion in the US and smaller one in Europe, Kapoor said.
Asia’s contribution will rise from less than 10 percent now to around 25 percent over five to seven years, he said.


Saudi Aramco aims to buy controlling stake in SABIC: Sources

Updated 23 July 2018
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Saudi Aramco aims to buy controlling stake in SABIC: Sources

  • Riyadh-listed SABIC, the world’s fourth-biggest petrochemicals firm, has a market capitalization of 385.2 billion Saudi riyals
  • The potential acquisition would affect the time frame of Aramco’s planned initial public offering set for later this year

DUBAI: Saudi Aramco aims to buy a controlling stake in petrochemical maker SABIC, possibly taking the entire 70 percent stake owned by Saudi Arabia’s sovereign wealth fund, two sources familiar with the matter told Reuters.
Late last week Aramco confirmed a Reuters report that it was working on a possible purchase of a “strategic stake” in Saudi Basic Industries Corp. (SABIC) from the Public Investment Fund, the kingdom’s top sovereign wealth fund.
Aramco’s initial thinking is to buy the full stake owned by the Public Investment Fund (PIF), but if that fails to materialize Aramco could end up with a stake in SABIC of more than 50 percent, making it a majority owner, the sources said.
No final decision has been made on the size of the stake as the discussions are still at a very early stage, they added.
Aramco declined to comment. The PIF did not respond to a Reuters request for comment.
Riyadh-listed SABIC, the world’s fourth-biggest petrochemicals firm, has a market capitalization of 385.2 billion Saudi riyals ($103 billion).
The potential acquisition would affect the time frame of Aramco’s planned initial public offering set for later this year, the state oil giant’s chief executive, Amin Nasser, said in a TV interview on Friday.
Aramco plans to boost investments in refining and petrochemicals to secure new markets and sees growth in chemicals as central to its downstream strategy to cut the risk of an oil demand slowdown.
Aramco plans to raise its refining capacity to between 8 million and 10 million barrels per day, from around 5 million bpd now, and double its petrochemicals production by 2030.
Aramco, the world’s largest oil producer, pumps around 10 million bpd of crude oil.