News

First Day of Dealings

25 April 2018

UAE Oil Services Plc (or the "Company") announces that its entire ordinary share capital, consisting of 1,000,000 Ordinary Shares of £1.00 each, has today been admitted to the Standard Listing segment of the Official List of the UK Listing Authority and to trading on the London Stock Exchange's main market for listed securities under the following TIDM: UOS and ISIN: IM00BF5G7P11.

Dealings in the Company's shares will commence on the Main Market at 8.00 a.m. GMT today.

About the Business

The Company has been formed for the purpose of making acquisitions in the oil and gas support services and infrastructure sector in the Middle East and North Africa, with an initial focus in the United Arab Emirates ("UAE").

The Company aims to identify suitable targets within the oil and gas support services sectors, including but not limited to bunkering, fleet and storage facilities, shipping, physical commodity trading, distribution and marketing of finished products. The Board will focus its search on target companies that supply refined products with the intention of building a business which covers aspects of the supply chain for distributing energy and commodity products throughout the MENA region and beyond.

The Company owns no assets other than cash on bank deposit of approximately £770,000 representing an initial equity investment of £1,000,000 less expenses incurred in relation to Admission.

"The listing of our shares on the Stock Exchange's Main Market marks the first step in our plans to create an oil and gas support services business in the MENA. We are excited by the significant acquisition opportunities and look forward to identifying targets and commencing our growth strategy."

The Company's strategy is to seek to acquire and develop a market leading business through acquisitions of one or more companies or businesses in the MENA region in the oil and gas support services and infrastructure sector. The Company will seek to acquire 100 per cent. ownership in target companies.

Given the number of opportunities that the Board believes will be available to the Company, it is intended that following its initial acquisition, the Company will seek to develop a regional oil and gas support services sector group and become a key player in the sector by growing organically or through additional acquisitions. However, as the Company will assume management responsibilities of any acquired target companies, either through its own Board or that of the acquired company, it will not seek to become an investment company and accordingly will not pursue a policy of diversification and spreading of risk in its acquisition policy.

Acquisitions

There is no specific expected target valuation or size for an acquisition, although it is likely that the Company will be targeting acquisitions in the region of US$50 million to US$300 million.

Upon completion of an Acquisition (especially the first Acquisition which may constitute a Reverse Takeover), the Directors may seek to transfer from a Standard Listing to either a Premium Listing or other appropriate listing, based on the track record of the company or business it acquires, subject to fulfilling the relevant eligibility criteria at the time.

Acquisitions will be negotiated with vendors and may be for cash or equity and accordingly may require the raising of additional external capital which will be a combination of equity, cash and/or debt, on a deal by deal basis.

The Directors will draw on their sector experience, in conjunction with their advisers' and shareholders' contacts and relationships, to identify suitable targets within the oil and gas support services sectors.

It is likely that the Company will seek to acquire the entire issued share capital of the targeted businesses that have strong cash flow and high-quality management teams.

The Company will seek to target businesses and companies with the following attributes:

an existing presence in a domestic or sub-regional market in MENA but with an international business and client base;

high cash flow and strong management teams;

a business which can withstand oil price fluctuations and regional uncertainty; and

the ability to achieve significant growth, both in terms of profitability and market share, to become a significant and independent player in the regional oil and gas support services sector through further investment and acquisitions and/or organic growth.

Opportunities

The oil and gas industry has been a challenging environment since the oil price collapse in June 2014, however the more recent rise in oil prices has created opportunities in the market. There are also significant opportunities to diversify in the petrochemical business and other areas that have received under investment in the past few years.

The UAE has recently announced a proposed change in law pursuant to which local companies in certain sectors in the UAE would be permitted to be 100 per cent owned by foreign owners. Currently, with the exception of certain companies operating from designated free zones, a company incorporated in the UAE must have a least 51 per cent of its shares held by GCC nationals.

This proposed change in law could provide a significant opportunity for UAE companies to undertake IPOs on overseas stock exchanges and attract international investors.

Board

The Directors have the relevant experience for sourcing, evaluating, structuring and executing Acquisitions. The Company will not be externally managed and the Board will have full responsibility for its activities.

Mr Trulsvik has worked in the oil and gas business since 1974 working on international assignments throughout the world. Mr Trulsvik is a geophysicist by background who has in the last twenty years been CEO of a number of listed and unlisted oil and gas companies and been in charge of operations across a number of emerging markets. Mr Trulsvik is presently Technical Director of Starc Limited and Chief Executive officer of JP Kenny Petroleum Ltd.

Mr Smedley is a chartered management accountant with a career in finance spanning more than 23 years. Mr Smedley previously ran his own accounting & business services company in Gibraltar, primarily advising high net worth individuals and entrepreneurs on start-up companies. In 2012, Mr Smedley established his own business in the UK, Redwood Accounting Ltd, which provides accounting and tax services to small companies.

Interests of major Shareholders

Mr. Alhammadi holds, in aggregate, 37.5% of the Company's entire issued share capital and Ms. Alhammadi holds, in aggregate, 32.5% of the Company's entire share capital. They will be able to exercise significant influence over the Company and its operations, business strategy and those corporate actions that require the approval of Shareholders.

Given the size of their aggregate shareholding and inter alia their relationship as the founders of the Company, Alhammadi's are considered to be acting in concert in accordance with the provisions of the Company's Articles. As such, any further increase in their respective shareholdings will be subject to Rule 9 of the Takeover Code.

The Alhammadi family is a UAE family with interest in real estate investments, development, and infrastructure projects.