Standard Chartered Led Private Equity Consortium Buys Minority Stake in FINE


May 13, 2015

Standard Chartered Private Equity (SCPE) led consortium has announced investment in Nuqul Group’s FINE company. The Jordanian company has agreed to sell a minority stake to the private equity consortium in a deal worth $175 million. It’s another big investment by SCPE in the Middle East and North Africa.


The Announcement
The announcement was widely published in newspapers on Tuesday. The official statement said the company has acquired a significant stake, albeit a minority one. SCPE will receive two seats at the board of FINE, the leading integrated tissue manufacturer in the region. Furthermore, the private equity group is going to provide “strategic insight” to FINE to help it reach it goals and expand its market share.


Taimoor Labib, regional head of MENA Private Equity and the head of global private equity portfolio management at SCPE, said in the official statement, “We are delighted to partner with the Nuqul Group, on of the region’s leading business conglomerates.”


Ahmad Abu Eideh, chief executive officer of Standard Chartered Bank Jordan, said, “We are excited that our private equity colleagues are investing in one of the leading companies in Jordan.” The other consortium partners were not revealed in the announcement and the total share remained a secret as well.


The Company’s Future Is All About Growth
FINE, majority owned by the Jordanian Nuqul Group, is most known for its tissue paper, but the company also makes kitchen, bathroom and industrial hygienic products, for instance, diapers. The company has already a strong market share in the Middle East and North Africa, but the private equity investment is hoped to help the company expand further.


The company is hoping to increase its presence throughout Africa, as well as expand its sales in South Asia and Europe. The investment is mainly aimed at increasing production capacity, according to Reuters. Some reports also suggest the company might be heading for an IPO.


The company’s headquarters are in Jordan, but it has operations across the Middle East. Its paper mills, converters and packaging plants can be found in countries like the United Arab Emirates and Kuwait. It has also plants in North Africa in Morocco and Algeria, for instance.


SCPE’s Strong Focus on the Region
The investment is the sixth investment in the Middle East and North Africa for the private equity group. It has previously also made one other investment in a Jordanian company.  In total, the private equity group has invested around $560 million in the region, highlighting its strong commitment in the emerging market. Ahmad Abu Eideh said in the official statement the deal is a “testament to the bank’s focus on building deep and long-standing relationships with out clients”.


The region has seen plenty of private equity interest in recent months and it is likely to be the target region for many firms in the coming months. Although the region still suffers from conflict and other such problems, there’s plenty of hope the region can continue to grow.  If you are looking for the best private equity deals in the region, check out the DealMarket platform.

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