NMDC Group Acquires 70% Stake in Emdad LLC

National Marine Dredging Company (NMDC) LTS, which is wholly owned by NMDC Group in the UAE, has announced on Thursday the signing of an agreement to acquire a 70% equity stake of the share capital and voting rights of energy services firm Emdad LLC from its current shareholders.

This strategic acquisition will enable NMDC Group to expand into oilfield services, further diversifying its portfolio and strengthening its competitive advantage & will allows NMDC to provide a broader range of services, including operations and maintenance, complementing its existing expertise in engineering, procurement, construction, and installation (EPCI), the company in a disclosure with Abu Dhabi Securities Exchange (ADX, this morning.

Formerly known as Al Bawardi, Emdad was formed in 1979 and has demonstrated strong revenue growth and a robust balance-sheet. Its diversified revenue streams span upstream well services and downstream maintenance, cementing its strong market position.

The company boasts long-standing relationships with key customers, including ADNOC, Borouge, and Emirates Global Aluminum (EGA).

Nassr Yasser Zagloul. Group CEO of NMDC Group, said that they were excited about the future of NMDC Group and the positive impact this acquisition will have on their business and enabling the company to capture new opportunities and deliver superior value to its stakeholders.

However, it remains subject to a number of conditions and fulfilment of certain requirements including, but not limited to, obtaining required approvals from the regulators and other agencies within and outside UAE, he added.

Offer Submitted in July

NMDC has submitted a binding offer for a 70% stake in Emdad LLC in July this year and this strategic move was designed to solidify the company’s presence in the market and enhance their position in the industry.

The offer was made after taking into consideration the outcomes of the due diligence and the binding was valid up to August 5, NMDC said.

It may be recalled that NMDC Group, has successfully closed the Initial Public Offering (IPO) of NMDC Energy, which was oversubscribed by 31.3 excluding cornerstone, on August 30. The offering attracted exceptional investor interest, generating total gross demand of $23.96 billion.

The offering of 1.15 billion shares in NMDC Energy, representing 23% of the total share capital, was made available to eligible investors at $0.76 per share.