MANAMA, 23 November 2004 — First Islamic Investment Bank E.C. has announced that shareholders representing 86.5 percent of the issued share capital of the UK-based water supply company South Staffordshire Plc have accepted First Islamic’s offer of 11.20 pounds sterling per share, which values the transaction at 245.0 million pounds.
“All three of our business lines, asset-based, real estate, and corporate investment, are now generating diverse investment opportunities in the European market for our investors,” said Mohammed Abdulaziz Aljomaih, chairman of the Bahrain-based Islamic bank.
“The South Staffordshire transaction represents our first European public-to-private transaction.” South Staffordshire Plc generates a majority of its income from its regulated operations, which supplies water to a population of 1.25 million in the British Midlands over an area of 1,500 square kilometers. The company also has a number of complementary non-regulated businesses including Aqua Direct, which supplies natural spring and mineral water.
“South Staffordshire ranks among the top performing companies in the UK water sector,” said Atif A. Abdulmalik, First Islamic’s chief executive officer. “We believe that the company has a strong management team and offers promising growth potential.” The company has historically generated stable earnings and strong cash flow. For the year ended March 31, 2004, South Staffordshire reported turnover of 72.8 million pounds and profit before tax of 14.5 million pounds.
“The UK water industry is attractive to financial investors because it has a transparent regulatory framework, with predictable and stable earnings, and low operating risks,” said Asim Zafar, executive director of Real Estate and Asset-Based Investment.
Headquartered in Bahrain, with offices in Atlanta and London, First Islamic’s three principal lines of business are corporate investment, real estate and asset-based investment.
