Al-Rushaid takes stake in High-Point Rendel

10 October 2003
Saudi Arabia's Al-Rushaid Investment Company (ARIC) has taken a majority stake in UK consultant High-Point Rendel. The holding is a result of ARIC's part in a£1 million ($1.7 million) management buy out (MBO) of the consultant on 30 September.

Senior managers from ARIC, including chief financial officer Shekhar Shetty, will sit on the holding board of the new company. High-Point Rendel chief executive Kelvin Hingley also sits on the holding board.

The MBO paid just over £1 million to buy the company's 27 million shares. 'The management has been talking about this for a long time,' says Hingley. 'We did not see the benefits of being a PLC. We have worked for Al-Rushaid many times before and through that, this grew. ARIC has a majority stake with a substantial portion held by the management.'

ARIC is the 11th largest group in Saudi Arabia, with an annual turnover in excess of $1,000 million. In September 2002, ARIC increased its stake from 58 per cent to 88.5 per cent in UK contractor Cleveland Bridge Group.

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