Xenel + AECOM

How a portfolio review led to the successful restructuring of a 40 year old JV agreement to enhance returns

Strategic Financial Advisory
+ M&A

Situation

Xenel KSA sought a review of its portfolio, focussing on its 40+ year old Aecom Arabia partnership, to assess returns optimisation options

Solution

  • Strategic review to appraise the options available including a sale of its stake and JV restructuring

  • Identified value and earnings optimisation opportunities via detailed financial review, modelling, valuation and a review of the JV terms

  • Presented, discussed and agreed an appropriate course of action with the global Board

  • Execution – advice on optimal transaction structuring, MOUs, negotiations with AECOM, project management of legals to completion

Result

A successful JV restructuring, delivering 10x increase in JV returns via earnings optimisation and a dividend policy enhancement

Andrew Nichol, Senior Partner Lumina Capital

“This transaction was a great example of how to carefully navigate and resolve key JV issues and expand a long-standing global relationship between a leading blue-chip international engineering firm and one of the most respected Saudi industrial family conglomerates in the region.  The outcome suited both parties and has enabled them to continue their successful regional growth”

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