Alpha Dhabi Holding, a part of Abu Dhabi’s Worldwide Holding Firm, has acquired a majority stake in Dubai-based water therapy specialist Metito, marking a strategic entry into the water and wastewater sector.
Alpha Dhabi will purchase the bulk stake from a consortium of shareholders together with Japan’s Mitsubishi Company and Mitsubishi Heavy Industries, in addition to Abu Dhabi-based non-public fairness agency Gulf Capital, Alpha Dhabi mentioned on Monday in a press release to the Abu Dhabi Securities Alternate: the place are shares are traded.
The dimensions of the stake and phrases of the deal weren’t disclosed. The Ghandour household, Metito’s founders, will retain their management roles, the assertion mentioned.
“This partnership is greater than a strategic enterprise transfer, it’s a testomony to Alpha Dhabi’s dedication to driving impactful change within the water sector and our broader imaginative and prescient for sustainable progress and world impression,” mentioned Hamad Al Ameri, Managing Director and common supervisor of Alpha. Dabi.
In 2014, Mitsubishi Company and Mitsubishi Heavy Industries acquired a 38.4 p.c stake in Metito Holdings, a transfer that allowed the Dubai utility to speed up its enlargement in rising markets.
Gulf Capital, Metito’s majority shareholder on the time, had bought 32 p.c of the corporate, leaving it with a 23.8 p.c stake.
Alpha Dhabi’s takeover coincides with the UAE internet hosting the Cop28 local weather change convention in November and comes at a time when the nation has referred to as for motion to sort out world water shortage.
Water safety is without doubt one of the world’s most urgent points, affecting practically 4 billion folks a minimum of one month a 12 months, in line with an article revealed final week by the UAE Ministry of International Affairs on the sidelines of the UN Normal Meeting in New York was revealed. .
Other than anticipating this determine to rise, the paper warned that, based mostly on present developments, water shortage might result in lack of life, meals insecurity, financial underdevelopment, humanitarian crises, involuntary migration, geopolitical instability and the potential of armed battle .
The Center East and North Africa high the worldwide rankings of water-scarce areas, and each Mena nation will face excessive water shortage by 2050, analysis from the World Assets Institute.
About 83 p.c of individuals within the area stay beneath excessive water stress, the report mentioned, with greater than 80 p.c of water sources used for irrigation, livestock, trade and home wants.
The World Financial institution has mentioned that water shortage might price the Mena area between 6 and 14 p.c of its gross home product by 2050.
“The necessity for sustainable water options has by no means been extra essential. Our partnership with Metito is a decisive step in the direction of addressing this pressing problem,” mentioned Al Ameri.
The acquisition underlines the corporate’s dedication to diversifying its portfolio and likewise strengthens Metito’s mission “to broaden sensible water options” within the Mena area and past, in keeping with the UN’s sustainability targets, Alpha Dhabi mentioned.
In a separate assertion, Karim El Solh, co-founder and CEO of Gulf Capital, mentioned: “Our journey with Metito started in 2006 with the founding Ghandour household and with the Worldwide Finance Company and, in 2014, with our valued Japanese companions. , Mitsubishi Company and Mitsubishi Heavy Industries.
“Our imaginative and prescient was to construct a worldwide chief in sustainable water options and after 17 years collectively, Metito has develop into the undisputed world water chief working in additional than 50 international locations.”
Up to date: September 25, 2023, 8:33 AM