IHG Acquires
Remaining 39.6% of United Engineering Systems at QR193.47
Million
October 17, 2018
Investment
Holding Group announced that it had signed a purchase agreement
for the remaining 39.6% stake in United Engineering Systems LLC,
whereby United Engineering Systems became a limited liability
company owned by one person, Investment Holding Group. A
contract was signed for the remaining 39.6% and the required
mandates from sellers to buyers were notarized on October 10,
2018. Formal procedures for authenticating the commercial
register of United Engineering Systems are still under process.
The remaining
shares were purchased at a price of QR 193,479,031 that will be
paid in installments ending October 1, 2020. A bank loan of QR 1
million has been obtained from Qatar International Islamic Bank
under the guarantee of the revenues of United Engineering
Systems LLC. The remaining will be paid from the company’s cash
surplus.
Why acquire
the remaining shares of United Engineering Systems LLC
Over the years,
United Systems Engineering LLC has demonstrated strong financial
performance in terms of abundant cash flows, limited loans,
annual cash distributions, mega projects with customers and high
margins, reflecting the financial position of United Engineering
Systems Which encourages the Group to make an offer to buy the
remaining shares, especially as the Group relies in part on such
operations for its growth as stated in the Group's strategy in
the Prospectus as a holding company based on the activities of
its subsidiaries. Also the core Group activities is the
management of its affiliated companies, and thus the Group
growth depends in part on the growth of the proportion owned by
other companies.
Effects of the completion of this
transaction on the financial position of the company and
shareholders
The impact of this transaction will reflect
positively on the Group's financial position as the growth of
the Group depends in part on the growth of its ownership in
other companies. United Systems Engineering LLC has a very
strong financial performance in terms of abundant cash flows,
limited loans, annual cash distributions, mega projects with
customers, and high profit margins.
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