JEDDAH: New stakes in companies in the water sector are expected to enhance local and regional capabilities in terms of technologies and making them sustainable. Desalination of the seawater is the only available source for meeting the needs across Saudi Arabia and the region. What is required is to make the technologies for desalination sustainable and cost-effective, a team of water experts said on Wednesday.
It is against this background that Moya Holding Company, a Middle East water treatment and services company co-founded by Jeddah-based Bushnak Water Group and Bahrain-based Gulf One Investment Bank, has reached an agreement with a major Singapore water company, which will enable the two major regional companies to bring latest water technologies to Saudi Arabia and elsewhere in the region.
“The definitive agreement with Dayen Environmental Ltd. is for buying 51 percent equity (about 20 million Singapore dollars) in the Singapore company, “ Adil Bushnak, executive chairman of Jeddah-based Moya Bushnak and vice chairman of Manama-based Moya Holding Company, told a press conference. “This acquisition is our first step toward considering more such acquisitions and help broaden our water sector capabilities, locally, regionally and globally,” he said, adding that the transaction is however conditional upon completion of satisfactory legal formalities by Moya, which has already successfully concluded a commercial and business review of the company. It is also conditional upon shareholder approval and other customary conditions.
The deal amounts to Moya’s controlling investment in the Dayen, which is listed on the Singapore Stock Exchange and a major Singapore water services company. “This transaction will be a bridge between the GCC (Gulf Cooperation Council), Singapore and Asian water markets,” Nahed Taher, founder and CEO of Gulf One Investment Bank, said. “This will be a good platform to bring to the Middle East many of the two-decade water lessons and achievements of Singapore,” she added.
Moya holding is a joint venture between Bushnak Group and Gulf One Investment Bank. Moya will be active in investing in the water market covering opportunities in desalination, wastewater, engineering, BOT/BOOT/BOO and water companies, and manufacturing, developing and investing in technologies. The Bushnak Group has over 30 years of track record in the water desalination industry.
“In fact, Moya’s vision is to invest globally in water — the blue gold. Collaboration between Moya and Dayen will invoke their inherent synergies and optimize their knowledge base. We see opportunities in Asia and the Middle East and this combination will better position both companies for capitalizing on these opportunities,” Nahed said.
In the initial years of its operations, Moya will primarily invest in water desalination, wastewater treatment and distribution projects, which cater to the needs of industrial clients and municipalities. “Moya will also consider investing in other profitable water companies in the target regions,” Ziyad F. Omar, founder and chief investment officer of Gulf One Investment Bank, said. The medium to long-term objective of Moya is to become a global water company investing in attractive water projects throughout the world. In addition to the investments, in the long-term, Moya is expected to enter into new business lines including asset leasing, chemical and consumables manufacturing, industrial spare parts manufacturing and technology investments.
The shares of Moya are anticipated to be listed on a suitable stock exchange within some years of launching it. Moya has several immediate investment opportunities across the MENA region as well as in India. The total value of these immediate projects is expected to be more than SR100 million.
