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Venture Capital Bank (VCBank) announced today the successful conclusion of its exit from Byrne Equipment Rental (BER) for a total transaction value of SAR 217 million (c. USD 58mn). This exit has generated a 45 per cent return on investment for investors since the Bank's acquisition of a primary stake in BER.
One of the largest and most diversified equipment rental and modular space providers in the GCC, BER operates through two well-established subsidiaries - Byrne Equipment Rental and Spacemaker. BER offers equipment and modular units for hire, plus a range of ancillary services including logistics, sewage removal, craneage and fuel supply for the construction, oil and gas, marine, events and facilities management sectors across the region.
Spacemaker is a leading manufacturer of modular structures in the UAE. Through its proven in-house design and engineering capabilities, the Company provides custom-built specialist commercial and high-end structures that meet the varying requirements of companies in the oil and gas, offshore marine, construction and hospitality sectors.
Commenting on this successful exit, Mr. Abdullatif Janahi, Board Member and CEO of VCBank, said: "This is in line with the Bank's strategy to conclude several exits from its investment portfolio during the current fiscal year and coming years. The exit from Byrne Equipment Rental and other investments in the region during highly-challenging economic and market conditions, and ensuring good returns and enhanced liquidity for investors and the Bank, is a priority. This is due to the efforts of the team responsible with the direction and strategic support provided to the Executive Management by the Chairman and Board of Directors."
"The Board and Management are fully cognisant that the coming year will be another highly-testing and largely-unpredictable period for the regional investment banking industry. Challenges include the ongoing impact on investor sentiment due to the economic reforms and fiscal measures being implemented by GCC governments; continued geo-political tensions; and the ability of OPEC member states to control crude output and maintain the recent improvement in oil prices," he pointed out.
"In response, we will continue our strategic focus on adopting a qualitative-based approach towards the rigorous post-acquisition management of the Bank's portfolio companies. This is designed to maximise the value of investment assets and provide investors and shareholders with improved returns. Encouragingly, we have identified additional eligible investments for exit which are earmarked for conclusion in the near term, one of which we hope to announce shortly," Mr. Janahi concluded.