Mumtalakat Digital Annual Report

Our
Investments

Partnering

for Growth

We have a long-term outlook. We actively seek commercially attractive investment opportunities in businesses with proven track records of growth and profitability and the potential for continued expansion. This was reflected in our partnerships throughout the year – we entered six investments with key market leaders in different sectors in addition to four co-investments alongside our partnership with RDIF.

Our investments in 2016 have been a true testament to our sound investment strategy which looks to diversify our portfolio in terms of sectors and regions in order to minimise risks and maintain long-term partnerships. Going forward, we are now confident that our investment model will enable us to meet our growth objectives and ultimately generate sustainable wealth for the Kingdom of Bahrain.

Mueller

MUELLER MIDDLE EAST

As we offer an ideal partner for investors looking to access the market, our first partnership in 2016 was where we invested, alongside other partners, approximately US $40 million to build the first copper tube manufacturing facility in Bahrain. This was following the signing of an agreement with Mueller Industries (Mueller), a leading manufacturer and distributor of flow control and industrial products listed on the NYSE, and Cayan Ventures (Cayan), an industrial projects developer and investor based in the Arabian Gulf. The facility will hold the name of Mueller Middle East and will address the increasing demand for quality copper tubes in the Middle East and North Africa region.

Under the agreement, Mueller will be the technical and marketing lead in the venture with a 40% ownership of the joint venture. Mumtalakat will be responsible for providing on the ground support, including procuring regulatory approvals for establishing the business, and will hold a 30% stake in the joint venture. Cayan will invest, structure and mobilise the project and will also hold a 30% stake in the joint venture.

Envirogen-1

ENVIROGEN GROUP

Notably, we invested in a water treatment company for the first time since our inception, where we acquired a significant equity stake in a UK-based specialised water treatment company, Envirogen Group S.A. (Envirogen). The acquisition was completed alongside Gecos Invest S.A. and Hermes GPE Environmental Innovation Fund LP through a joint investment syndicate led by Promethean UK Opportunities Fund II, LP (PUOFII).

Gulf-cryo

GULF CRYO

We acquired a minority equity stake in Gulf Cryo, a leading regional manufacturer, distributor and service provider of industrial gases.

Gulf Cryo produces and supplies industrial, medical and specialty gases to a wide range of industries in the MENA region. Gulf Cryo was the first gas manufacturer in Kuwait to provide industrial gases such as oxygen and nitrogen to the booming local petroleum industry.

Alleastur

ALEASTUR

Our second investment in 2016 was an acquisition of an equity stake in in Asturiana de Aleaciones S.A. (Aleasture), a Spanish-based manufacturer of aluminium grain refiners and master alloys.

REGENT PROPERTIES

We continued looking to partner with well-established international companies operating in related sectors to further diversify and grow our investment portfolio. In May 2016, we marked our 4th investment for the year in which we partnered with Regent Properties to acquire an interest in an existing portfolio of high-quality commercial real estate assets in the United States. The aggregate value of this US-based portfolio is approximately US $250 million and is comprised of substantially leased, income-generating Class-A office buildings in the Phoenix, Arizona and Dallas, Texas areas. With this transaction Mumtalakat joined existing Regent investors including affiliates of BlackRock, CAM Capital, and other well-known endowments and pension funds.

KOS

KOS Group

In 2016, we also witnessed our first investment in Italy in the healthcare sector. We invested in KOS group, a leading healthcare operator in the areas of social health, residential care for chronic illnesses, rehabilitation and mental health services, and management of medical equipment and diagnostic centres. It has over 76 dedicated facilities comprising 7,200 beds including nursing homes, rehabilitation centres, hospitals and mental health clinics. Additionally, the group has an international presence through its diagnostics and cancer care services unit in the UK and India.

Hyperloop-One-copy

HYPERLOOP ONE

Alongside our partnership with RDIF, we have closed four investments during the year. These include an investment in Hyperloop One, a US technology company established to develop a high-speed transportation system; Professional Logistics Company, a firm focused on investing and owning institutional quality logistics assets in Russia; Arc International, a French manufacturer and distributor of household goods and a global player in the glassware market; and ZapSib, a company designed to have the largest modern petrochemical facility in Russia aimed at the deep processing of hydrocarbon by-products in Western Siberia as well as import substitution of polymers in the Russian market.

PLT

PROFESSIONAL LOGISTICS TECHNOLOGIES

Professional Logistics Technologies is a newly founded company with a focus on investing and owning institutional quality logistics assets in Russia. The company is planning to grow its portfolio of modern logistics facilities to become the leading player in logistics facilities in Russia with a network of facilities throughout the country.