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.