SGRF & ESCRIBANO SIGN AN INVESTMENT DEAL
State General Reserve Fund and the Spain-based Mecanizados Escribano signed an agreement to acquire a 32.2% stake in the company.
The signing ceremony was held in SGRF premises under the auspices of HE Nasser bin Khamis Al Jashmi, Undersecretary of the Ministry of Finance. And was attended by H.E. Juan José Urtasun Erro, Ambassador of Spain to the Sultanate of Oman, and number of Omani and Spanish prominent officials, executives and businessmen.
Mecanizados Escribano is a Spanish company based in Madrid that manufactures precision mechanical components and develops its own systems for the aerospace and defense sectors. According to the deal, SGRF will invest in Escribano through a combination of equity purchase from the current owners and a capital increase to finance new development projects.
HE Abdulsalam Al Murshidi, Executive President of SGRF commended the agreement signing stressing that the deal comes in light of the Sultanate's continuous efforts to explore successful investment opportunities with leading companies around the world.
"SGRF considers Mecanizados Escribano as a long-term strategic investment, with the intention of remaining investors for the foreseeable future and favoring future expansion plans of the business notably in Oman." Said Al Murshidi
"The agreement is to replicate Mecanizados Escribano's business model in Oman, in respect to machining capabilities and technologies, but encompassing it to the startup of the local business. This will no doubt help create a lot of needed job opportunities and train our national cadres to work in this booming sector."
On his part, Javier Escribano commented on the agreement saying: "Mecanizados Escribano is happy to have joined hands with Oman to continue the march of a rapidly growing company which has managed to secure an impressive pipeline of contracts in the aerospace and defense industry. The Company has consistently remained a competitive and favored supplier to its clients, in an industry dominated by significantly larger players." He said."We will seek to transfer our expertise to Oman and help establish a solid industrial base that would guarantee better future for the country. Moreover, the Management team is excited to explore new markets, with the assistance of SGRF's relationships."
It is worth mentioning that the new partnership will be named Escribano Middle East LLC and Oman National Investment Development Co (TANMIA) is going to represent SGRF in the locally established company with a 30% share.