National Energy Services Reunited Corp (NESR), announced the completion of its business combination with Gulf Energy SAOC (GES) and National Petroleum Services (NPS) on 6 June 2018.
The combined company creates an industry-leading provider of integrated energy services and solutions in the Middle East and North Africa (MENA) region. Following the closing of the transaction, NESR’s common stock and warrants will continue to trade on the NASDAQ Capital Market stock exchange under the ticker ‘NESR’ and ‘NESRW’, respectively.
“We are pleased to announce that National Energy Services Reunited Corp is now ready and eager to deliver the highest quality of services to our esteemed customers in the MENA region,” said Sherif Foda, chairman of the board and CEO of NESR.
“When we set out on this journey, we envisioned to create a truly national services company which has its roots in the MENA region. With the closing of these acquisitions, I believe we achieved our objective and have set the stage for our future growth strategy.”
“Our key goals are to create employment opportunities, significantly expand local manufacturing and be recognised as one of the best service providers in the area. I would also like to thank our shareholder base which has supported these transactions, and I look forward to working with our great team of employees of NPS and GES to fulfil our vision,” added Foda.
The transaction was approved by the board of directors of NESR and by shareholders at a special meeting in lieu of an annual meeting on 18 May 2018. At $10 per share, NESR will have an aggregate market capitalisation following the business combination and completion of redemptions of approximately $1.1bn.
As a result of the business combination, former GES and NPS shareholders including Mubadarah Investments, Al Nowais Investments and Sheikh Suhail Bahwan, now collectively own a significant portion of the combined company, representing approximately 46% of the proforma market capitalisation.
Major shareholders who provided capital for the acquisitions include SCF Partners along with Viburnum Funds, The Olayan Group, and Waha Capital.