Italian group acquires
minority share in Batco Oman arm
Consortium prequalified in major railway tender
Italian Itinera SPA, a contracting firm subsidiary of Gavio Group, purchased 49 percent of Federici Sterling, a subsidiary of Batco Group in the Oman Sultanate.
Sources close to the deal estimate the acquisition at $50 million. "There will be some changes in management as we will receive a new Chief Financial Officer, as well as some new technical management positions,” he said. Around 1,300 employees work in Federici Sterling and will not be affected by the changes.
“Our goal is to grow and increase our ability to compete in international markets,” he said.
“This deal shows that international companies are interested in Lebanese firms and have confidence in the good governance and competences that they have to offer,” said Azour.
Both companies are participating in a tender, along with ten other international consortia, to handle a civil works contract for the first phase of Oman’s railway network. The network is a 207 kilometer link from Sohar to Buraimi on the Emirati border in the north of the sultanate, which makes up Oman's section of the GCC railway network. They were prequalified and have entered the qualification phase.
Azour said this investment agreement positions his group as a provider of services in the fields of engineering, construction, solid waste management, water treatment, renewable energy, and other technical services in both the public and private sectors.
Chairman of Itinera Alberto Rubegni said that the company will offer "global expertise in the infrastructure and civil construction sector.”
Gavio Group is an Italian holding company that ranks second in the world as an operator of highway concessions with revenues of up to 3.9 billion euros.
Reported by Yassmine Alieh
Date Posted: Oct 13, 2015