Saudi Arabia's Dabbagh Group is planning to sell a 19 percent stake in its lubricant business to repay financing it used to buy out its Indian partner earlier this year, three banking sources aware of the matter said on Monday.
Dabbagh Group, which has interests in food, real estate and automobile services, fully owns Jeddah-based Petromin after buying out the 49-percent stake held by India's Hinduja Group in May this year following strategy differences between the two partners.
The buyout was partly funded through bank finance and the diversified family group is now looking to offload part of the firm to repay the debt, the sources said, speaking on condition of anonymity as the sale plan is not public.
One banking source familiar with the matter said that the Dabbagh Group may consider selling a further 30 percent of Petromin to the public through a listing in the first half of 2015, which would leave Dabbagh retaining a majority 51-percent stake.
The company has hired Saudi Fransi Capital, the investment banking arm of Banque Saudi Fransi, to arrange the stake sale, the sources said.
Hinduja Group declined to comment. A spokesman for Dabbagh Group did not return an email seeking comment. Petromin and Saudi Fransi Capital were not available for comment.
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