DOHA, QATAR - Gulf International Services (“GIS” or “the group”; QE: GISS), the largest service group in Qatar, with interests in a broad cross-section of industries, ranging from insurance, re-insurance, fund management, onshore and offshore drilling, accommodation barge, helicopter transportation, and catering services has signed a Share Purchase Agreement (“SPA”) with Japan Drilling Co. Ltd. (“JDC”) to acquire all of JDC’s 30% shareholding in Gulf Drilling International Ltd. Q.S.C. (“GDI”). Pursuant to the terms of the SPA, GIS shall own all of JDC’s shares in GDI starting 1 May 2014, making GDI a wholly owned subsidiary of GIS.
The SPA was signed by H.E. Dr. Mohamed Bin Saleh Al-Sada, Minister of Energy and Industry and Chairman and Managing Director of the Board of GIS, Mr. Saad Sherida AL-Kaabi, Director of Oil & Gas Venture of QP and GDI Chairman of the BOD and Mr. Yuichiro Ichikawa, President of JDC.
On this occasion, H.E. Dr. Mohamed Bin Saleh Al-Sada stated, “This was an opportune time for GIS to increase its stake in GDI. GDI is now established as a world-class onshore and offshore drilling contractor.”
GDI has been growing rapidly in recent years after it embarked on the most intensive capital investment plan in its history. Upon receiving the full share from Japan Drilling Company, GDI will become a fully owned subsidiary of GIS. In turn, GIS will enjoy substantially higher earnings from GDI.”
Mr. Yuichiro Ichikawa stated that one of the primary objectives of the joint venture was to transfer drilling rig technology and the capabilities of operating drilling rigs safely and efficiently from JDC to a Qatari company on a structured and sustainable basis. We are proud of GDI's achievements over the past ten years and the self-sufficiency that it has achieved across all aspects of the business.
GDI and JDC also signed a Letter of Intent that provides for the exchange of further technical cooperation between the two companies and the promotion of mutually beneficial business opportunities. The Letter of Intent was signed by GDI’s CEO, Mr. Ibrahim J. Al-Othman and Mr. Ichikawa. Mr. Al-Othman expressed his appreciation for the fine support that JDC had extended to GDI and said GDI was pleased to be able to continue its association with JDC its former partner.
The GIS Chief Coordinator, Mr. Ebrahim Al Mannai, stated that the fundamentals of the GIS investment to increase its stake in GDI were favorable. It should also be noted that this transaction will be 100% financed through an unsecured bilateral loan from local banks, obtained at competitive terms and conditions.
Mr. Ebrahim Al Mannai also stated that GIS' shareholders will benefit from the substantial contributions that GDI will be making going forward to GIS’ financial performance. GDI has entered into a new stage and exciting phase of its journey, backed by world-class technical capabilities, impeccable HSSE track record and long-terms contracts for its assets, and GIS is very pleased to have increased its stake in this growing company.