VPower Group International Holdings Limited (“VPower Group”, together with its subsidiaries, the “Group”, stock code: 1608.HK) is pleased to announce that, Tamar VPower Energy Fund I (the “Fund”), an equally contributed investment fund by CITIC Pacific Ltd. (“CITIC Pacific”) and VPower Group through their wholly owned subsidiaries, jointly with Itqan Holding Limited (“Itqan”) (collectively the “Parties”), have entered into an agreement to acquire the entire issued share capital of Byrne Equipment Rental LLC (together with its subsidiaries, the “Byrne Group”). The transaction is valued at approximately AED1 billion (equivalent to HKD 2.14 billion).
The Byrne Group includes, amongst others, Byrne Equipment Rental, Spacemaker (UAE), Byrne Technical Services (KSA) and Byrne Medical Equipment Rental, which together form one of the most diverse equipment rental suppliers in the Gulf Cooperation Council (“GCC”) region. With more than 10,000 items of plant and 15 operational bases, the Byrne Group offers high quality equipment rental solutions and power rental solutions to a broad variety of sectors including oil and gas, construction and infrastructure, events, industrial and manufacturing and marine and ports throughout the GCC region.
Mr. Rorce Au-Yeung, an investment committee member of the Fund and Co-Chief Executive Officer of VPower Group, commented, “It is the first acquisition of the Fund since its establishment in January 2018, which marks the successful collaboration of CITIC Pacific and VPower Group in identifying synergistic mergers and acquisitions in the energy sector through the Fund. We believe it is a mutually beneficial acquisition to all parties. We have established long-term business collaboration with the Byrne Group through SI business hence we see its excellent operational performance over the years. Its potential growth supported by the Fund and our expertise in the power market is tremendous. The strong network of the Byrne Group, at the same time, provides a readily available platform for us to efficiently expand our SI and IBO into the Middle East which is among the world’s highest electricity consumption per capita and where the electricity demand has continued to outpace supply growth.”
Mr. Steve Kwok, an investment committee member of the Fund and Executive Vice President of CITIC Pacific, remarked, “We are pleased with the opportunity to invest with our partner VPower Group in this world-class equipment rental company in the GCC region. This is our first project in the region and we are confident to contribute our expertise in the power sector and bring in other business opportunities leveraging CITIC Group’s network to support the growth of the Byrne Group and open up the China market opportunity.”
“VPower Group and CITIC Pacific have a clear understanding of our operating model and we see this as a powerful opportunity to leverage our respective strengths and generate enhanced growth in our markets.” Mr. Sheikh Hamad Al Sulaiman, Chairman of Itqan and Chairman and Chief Executive Officer of the Byrne Group gladly added, “The acquisition will support Byrne’s plans to grow into the Asian market and replicate the success the company has already achieved in the GCC region, and tap into a wider scope of power generation solution market in the GCC region.”
About VPower Group International Holdings Limited
VPower Group is principally engaged in SI business, in which the Group designs, integrates and sells gas-fired and diesel-fired engine-based gen-sets and PGSs, utilizing proprietary system designs and integration capabilities of the Group; and IBO business, in which the Group invests in, builds and leases and operates distributed power stations to deliver electricity to the region. It is one of the world’s leading large gen-set system integration providers, and Southeast Asia’s largest private gas-fired engine-based DPG station owner and operator.
For more information, please visit the Company’s website at www.vpower.com
About CITIC Pacific Limited
CITIC Pacific is a wholly-owned subsidiary of CITIC Limited (stock code: 267.HK). Its key businesses include special steel manufacturing, energy and real estate development. It is also the majority shareholder of two companies listed on the Main Board of the Stock Exchange, namely, Dah Chong Hong Holdings Limited (1828.HK) and CITIC Telecom International Holdings Limited (1883.HK).
CITIC Limited is one of China’s largest conglomerates operating domestically and overseas, with businesses in financial services, resources and energy, manufacturing, engineering contracting and real estate as well as others.
For more information, please visit the company’s website at www.citic.com
About Tamar VPower Energy Fund I
Jointly established and managed by CITIC Pacific and VPower Group, Tamar VPower Energy Fund I targets high growth investment opportunities in the energy sector in markets encompassed by the Belt and Road Initiative.
About the Byrne Group
Byrne Equipment Rental is the most diverse supplier of rental equipment across the GCC, with 15 operational bases, a fleet of over 10,000 items of plant and a team of 800+ people. The company offers high quality equipment rental solutions to a broad variety of sectors including but not limited to: oil & gas, construction & infrastructure, events, industrial & manufacturing and marine & ports throughout the GCC region.
For more information, please visit the company’s website at www.byrnerental.com
Spacemaker (UAE) and Byrne Technical Services (KSA) – are sister companies to Byrne Equipment Rental providing tailor made engineering solutions for complex purpose-built structures that require fast track turn around and innovative transport solutions. Spacemaker’s success is built on reliability, quality and its ability to cater to any part of the globe or any specific requirement. The products/structures are engineered using state of the art equipment and technology, ensuring maximum longevity and low total life costs for clients.
For more information, please visit the company’s website at www.spacemaker.ae and www.byrnetechnical.com
Byrne Medical Equipment Rental is the only medical leasing specialist in the GCC region. All members of the management team […]