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Dubai: Saudi investors of Abraaj Capital on Tuesday said they have sold their 30 per cent stake in National Air Services (NAS) to Kingdom Holding Company (KHC), generating a 52 per cent internal rate of return (IRR) over a two-year holding period.
The investors were led by Shaikh Abdul Rahman Ali Al Turki, chairman of Abraaj Capital. KHC was founded by Saudi billionaire Prince Al Waleed Bin Talal Bin Abdul Aziz Al Saud.
"The implied valuation of NAS increased by four times over this period, providing an excellent return to the Abraaj Saudi investors," Abraaj said in an e-mailed statement.
Over the past two years, the active strategic involvement of Abraaj Capital allowed NAS to expand its reach and range of services substantially.
In December 2006, NAS became the first private company to receive a Saudi Arabian government licence to provide commercial aviation services from Riyadh.
Arif Naqvi, vice-chairman and group chief executive of Abraaj Capital, said, "Over the past two years, Abraaj Capital has made a significant contribution to unlocking the value of NAS, which has undergone a corporate restructuring during this period of sustained organic growth and unparalleled expansion."
Ayed Al Jeaid, chairman of NAS, said, "This targeted expansion has been facilitated by Abraaj Capital's strategic support, which has contributed to NAS's ascension as the Middle East's premier provider of aviation services."
In 2007, NAS, with the support of Abraaj Capital, finalised one of the biggest aircraft acquisition deals by a private company in the history of Middle East aviation, by signing contracts with Airbus, Gulfstream, Dassault and Hawker Beechcraft. With an investment of $4 billion, these agreements will bring the company's total fleet size to 167 aircraft by 2012.
Founded in 1999 in Riyadh, NAS is a leading provider of aviation services in the Middle East.
Last year, the company launched NAS Air with a fleet of five aircraft. This is expected to increase to 18 aircraft by 2010. Nas Air currently serves 20 domestic routes with 241 flights per week.
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