NMDC LTS Signs Definitive Agreement to Acquire Majority Stake in Emdad
Deal News | Dec 06, 2024 | Zawya
NMDC LTS, a subsidiary of NMDC Group, has signed a definitive agreement to acquire a 70% equity stake in Emdad, a service provider in the oil and gas, utilities, and industrial sectors. This strategic acquisition is poised to broaden NMDC's portfolio by expanding into oilfield services and acknowledging the favorable market conditions within the energy sector. The acquisition aligns with NMDC's strategy to enhance its competitive position, regional presence, and revenue growth, building on partnerships with prominent companies such as ADNOC and ARAMCO. The move follows a successful IPO of NMDC Energy PJSC on the Abu Dhabi Securities Exchange. Emdad has leveraged its expertise since 1979, enjoying robust client relationships, diversified revenue streams, and a solid balance sheet. The acquisition signals NMDC Group's ambition to innovate and lead within the energy sector.
Sectors
- Oil and Gas
- Energy Services
- Engineering, Procurement, and Construction (EPC)
Geography
- United Arab Emirates – Both NMDC and Emdad are based in the UAE, a hub for the oil and gas industry and part of the acquisition's strategic focus.
Industry
- Oil and Gas – The acquisition involves companies specializing in the oil and gas sector, highlighting the relevance of industry services such as operations, maintenance, and well services.
- Energy Services – Emdad provides integrated energy services, and the acquisition is driven by the strategy to diversify services in this industry.
- Engineering, Procurement, and Construction (EPC) – NMDC's existing expertise aligns with Emdad's services, part of their operational expansion in EPC works.
Financials
- 70% – The percentage of equity stake in Emdad being acquired by NMDC LTS.
- 31.3 times – The oversubscription rate of NMDC Energy PJSC’s IPO on the Abu Dhabi Securities Exchange.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| NMDC LTS | Buyer | Company | A wholly owned subsidiary of NMDC Group, focused on expanding its oil and gas service offerings. |
| NMDC Group | Parent Company | Company | The parent company executing the strategic acquisition to enhance regional presence and service diversity. |
| Emdad | Target Company | Company | An integrated service provider in the oil and gas, utilities, and industrial sectors. |
| Abu Dhabi National Oil Company (ADNOC) | Client | Company | A prominent client in the oil and gas industry, part of Emdad's enduring client relationships. |