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Saudi-‘Israeli’ Normalization Continues: Aramco’s Biggest Mandate Goes for Moelis & Co

Saudi-‘Israeli’ Normalization Continues: Aramco’s Biggest Mandate Goes for Moelis & Co
folder_openSaudi Arabia access_time7 years ago
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Local Editor

As part of the continuous normalization with the apartheid "Israeli" entity, Moelis & Co has been chosen as the sole independent adviser for the planned initial public offering of Saudi Aramco, according to three people familiar with the process, scoring the New York boutique investment bank the biggest equity advisory mandate to date.

Saudi-‘Israeli’ Normalization Continues: Aramco’s Biggest Mandate Goes for Moelis & Co

Moleis has hired Shlomo Yanai as a Senior Advisor of Moelis & Company since October 2016.

The latter is known to be as a retired "Israeli" military officer and businessman. He was offered the directorship of Mossad by Benjamin Netanyahu but turned it down.

Winning the hotly contested mandate represents a coup for the independent firm, which was founded by veteran dealmaker Ken Moelis in the midst of the financial crisis in 2007. Other banks are still in the race to underwrite the offering.

Those close to the decision taking have said the sale of a 5 per cent stake - potentially worth about $100bn - should happen next year, although the number of shares sold could increase, and the timing could slip.

The proposal is the centerpiece of an ambitious strategy by the hard-charging deputy crown prince Mohammed bin Salman to overhaul the country's economy, using a broad-based privatization program to boost employment and diversify the kingdom away from oil.

Moelis declined to comment, and Saudi Aramco did not immediately respond to requests for comment.

The offering would be complicated largely due to how entwined Saudi Aramco, the kingdom's biggest revenue generator, is with the state. Besides managing vast oil reserves, it acts on behalf of the government constructing schools, hospitals and sports stadiums.

In the Middle East, Moelis built a sizeable team of advisers who have worked closely with large companies including Dubai World and Abraaj, a powerful UAE private equity fund. The Middle East team works closely with specialists in London, New York and Houston, where Moelis has recently made several big hires.

Source: Financial Times, Edited by website team

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