Bahrain-based Moya holding is acquiring a 51% stake in the Singaporean water services major Dayen
Moya Holding Company, a Bahrain-based water treatment and services company, is acquiring a majority stake in Singapore-based Dayen Environmental, one of the leading water services company in the city state. Dayen is listed on the Singapore Stock Exchange and is a founding member of Singapore International Water Week (SIWW).
On December 17, 2009, Dayen announced a strategic Share Placement with Moya for the latter to invest approximately S$20 million in cash, in return for shares and share options representing a 51 per cent interest in the enlarged capital of Dayen.
Adil Bushnak, executive chairman of Jeddah-based Moya Bushnak and vice chairman of Manama-based Moya Holding Company, said: "This acquisition is our first step toward considering more such acquisitions and help broaden our water sector capabilities, locally, regionally and globally.”
The completion of the transaction is subject to a number of conditions including shareholder approval. Moya has already successfully concluded a commercial and business review of the company.
"This transaction will be a bridge between the GCC (Gulf Cooperation Council), Singapore and Asian water markets," Nahed Taher, founder and CEO of Gulf One Investment Bank.
The S$20 million investment from Moya is expected to strengthen Dayen’s participation in higher value contracts, and enable the company to expand its portfolios to include significantly larger and more complex projects.
Dayen has entered FY 2010 with additional two new projects in Bahrain and Qatar worth S$2.99 million. It signed a contract with Waagner Biro Qatar (Waagner Biro) for a new Ultra-Filtration (UF) project in Qatar. The contract, which is valued at $583,000, will entail designing, supplying, installation and commissioning of an UF system for a treated sewage effluent polishing plant for Waagner Biro.
Last year, Dayen Environmental entered into a contract with Habib Ali Awachi & Sons Group (Habib Awachi) for a new sewage treatment plant (STP) in Bahrain. Under the contract, Dayen will supply and supervise the installation and commissioning of a 1,000m3/day municipal STP system using MBR technology for The Bahrain Petroleum Company (BAPCO). The contract is worth $1.55 million.
"We see opportunities in Asia and the Middle East and this combination will better position both companies for capitalising on these opportunities," Nahed said.
Moya holding is a joint venture between Bushnak Group and Gulf One Investment Bank. Moya invests in the water market covering opportunities in desalination, wastewater, engineering, BOT/BOOT/BOO and water companies, and manufacturing, developing and investing in technologies.
