“As a holding company SEDCO has made significant investments in operating companies around the world and is involved in actively seeking out new acquisitions to develop its portfolio or to grow individual companies operating under the SEDCO umbrella. Today, we have a range of companies within our portfolio – market leaders, mid-sized enterprises and promising start-ups,” said Dr. Adnan Soufi, CEO of SEDCO Holding.
Dr. Soufi added that SEDCO is seeking investments of above $20m that allow control or significant minority rights with the ability to influence the decision-making process through board participation.
Commenting on strategy, Dr. Soufi said: “SEDCO is an active investor with a private equity approach and capabilities for value addition. However, we have a more strategic mindset that allows a longer – even indefinite – holding period for risk adjusted returns.”
SEDCO’s immediate focus for acquisitions will be in Saudi Arabia. “We are particularly bullish on the Kingdom as our investment destination, given the economic uncertainties in much of the rest of the world,” continued Dr. Soufi. “We are planning to invest in yet more Kingdom-based enterprises, as we have established relationships, proven on-the-ground capabilities and a deep understanding of regulations and risk management. We are looking for material shareholdings in cash generating businesses preferably in defensive sectors and health care.”
“Obviously, the track record of the management team, support of like-minded shareholders and the strength of the company’s long-term business plan are critical factors in any prospective acquisition,” he added.
In tandem with SEDCO’s Mergers and Acquisition strategy, there will be a carefully planned and executed divestment strategy primarily engaging institutional investors for private placements and Initial Public Offerings.
“We are reviewing our mature businesses that will benefit from strategic investors or public ownership for continued growth. Preparations are currently underway for private placements or the launch of IPOs over the next 24 months, mostly in Kingdom-based enterprises.”
Dr. Soufi concluded his comments by saying, “SEDCO welcomes the engagement of serious, institutional investors in this process. While the holding company does regularly mandate sell-side advisors, the preference is to collaborate with established firms they have worked with over a long period of time.”
In addition to its visible investments locally in fast growing businesses such as Al Nahdi Medical Company, and Dar Alfuad Hospital, SEDCO has a global portfolio of direct investments in countries such as Malaysia, Singapore and Egypt.
In addition, SEDCO has developed local and international real estate investments including the prestigious Mahmal Center, the landmark Red Sea Mall, Al Massara and Al Nakheel Center, Metrowest Community a mega residential community in Orlando Florida, and the Haines Building.
Continuing its outstanding success with high quality real estate projects, SEDCO is currently developing the new Galleria on Prince Mohamed bin Abdulaziz Street (Tahlia Street). Winner of the Saudi Buildinfra Award 2011, the new Galleria is the latest flagship project of SEDCO Development, a SEDCO Holding group company, and will be a multi-function environment consisting of a 5-star hotel managed by SEDCO’s Elaf, and a glass-vaulted luxury shopping arcade and leisure area.
Founded in 1976, SEDCO has become internationally recognized as a leading global Islamic wealth management organization through its commitment to Shariah principles that are the foundation of the company’s strength. Later, SEDCO Holding was established to consolidate the various business activities of SEDCO, in which the wealth of the Bin Mahfouz banking family is invested.
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