French construction giant Oger International has been acquired by Jordanian investor Al Khawaja, who now owns the company outright through AMK Capital Investment.
Khawaja’s acquisition of Oger International coincides with the end of a job protection plan and business protection procedures endorsed by the Bobigny Court in Paris, France, on 15 February, 2018.
Oger International’s chairman and chief executive officer, Omar Joseph Baroud, said the full acquisition of its capital by Al Khawaja marked the start of “new chapter in its history”.
The company said it planned to regain its "leading position" in the construction engineering market, expand its client base, and expand geographic operations by 2021.
Khawaja, Oger International’s shareholder, has investment stakes in banking, telecommunications, leisure and hospitality, but not in construction hitherto. He invested in Oger International to diversify his portfolio, according to a statement issued by the French company.
Oger said Khawaja participated in the restructuring of the company’s debt and acquired all shares.
Debt restructuring and the acquisition of all shares was done in such a way to ensure the process adhered to the 2019-2021 strategic development plan launched by Oger’s hierarchy.
On the acquisition, Baroud said: "A new chapter in our history can now be written, a more serene chapter, one that is future-oriented, and full of new challenges of the sort we love at Oger International.
“The know-how and in-depth expertise that have made our reputation for 40 years will find more diversified and more stable fields of application. The French and European markets once again become our priority, but we continue to fly the French flag in the Middle East and Africa, where we still successfully develop numerous opportunities.”
In 2016, the default of Oger International’s biggest client in the Middle East sent the French construction, engineering, design, and project management firm into a process of corporate reorganisation that saw its debt frozen for 18 months.
This helped to address the company’s “cash flow difficulties”, said Oger International.
The company has reorganised itself against two central pillars: client diversification and retaining a strong foothold in its native country.
France, Europe, Africa, the Middle East, and Saudi Arabia are the backbone markets for the company, supported by three business units — architectural and interior, fluids and electricity, and structure and infrastructure.
A development committee has been set up to deploy Oger International’s new strategy.
The company, which has an office in the UAE, said it would strengthen its operations in France and Africa to carry out “complex and ambitious projects".