KARACHI, Dec 13: Abraaj Capital — an investment firm specialising in private equity investment in the Middle East, North Africa and South Asia (MENASA) region — is understood to be in talks to acquire majority stakes in Bosicor Pakistan Limited — the country’s fifth refinery.
Sources close to the matter said that the Dubai-headquartered firm had appointed a consultancy ‘associate’ of one of the five biggest auditing firms in the country to conduct due diligence, which was under way.
Abraaj Capital is not new to Pakistan. The company’s real estate arm, “Arabtec” which was the leading contractor for such prominent projects as the Burj Dubai and Dubai International Financial Centre, was earlier this year awarded a US$140 million contract to construct the 37-storey Karachi Financial Towers.
Launched in February this year by President Musharraf, the KFT, when completed, would be the tallest building in Pakistan.
Before that, Abraaj had launched a joint venture fund with a local investment company.
In November 2006, the fund acquired 80 per cent stake in Manan Shahid Forgings Ltd (MSF), Pakistan’s largest steel forging house.
Bosicor Pakistan Limited —the country’s fifth oil refinery — is located on the coastline of the Arabian Sea.
To augment revenues, the refinery has been cherishing plans of commissioning 50 petrol pumps by end June 2008; revamping crude distillation plant and most importantly to build 11 storage tanks with storage capacity of 125,000 tons, to capture inventory gains. But for all that the refinery scarcely has an impressive record of performance, when compared to its peers. So what makes Abraaj interested is investing in Bosicor?
This scribe made attempts on Thursday to seek views of Mr Arif Masood Naqvi, executive vice-chairman and CEO who founded Abraaj Capital in 2002, but his office in Dubai said that the chief was on business trip to Rome.
Mr. Arif Naqvi was awarded country’s highest civilian honour Sitara-i-Imtiaz in 2006.
Another official at the Abraaj headquarters in Dubai, in answer to queries, curtly remarked that they were not supposed to discuss specific transactions.
But an insight could be had from Abraaj Capital newsletter of autumn 2007, which mentioned that the company follows the ‘Buy and Build’ strategy.
‘Abraaj Capital Corporate Brochure’ also announced intent to invest up to US$1billion in Pakistan across a range of industries over the next three to five years. Those, the brochure stated, would be made in selected sectors, including oil and gas; financial sector; power; tourism; telecom and construction related industries.
The local management of Bosicor Pakistan Limited did not return calls made to seek their confirmation or denial of the on-going takeover talks.
