Investment Analyst
SPIMACO ADDWAEIH
مجموع سنوات الخبرة :6 years, 8 أشهر
SPIMACO is the Kingdom's largest pharmaceutical company and one of the largest in the MENA region. The Company is a fully integrated pharma player with presence across the pharmaceutical value chain and an extensive investment footprint in the region comprising investment interests in 10+ affiliates and associates.
I am tasked with managing all the Company's corporate finance deal flow from origination and strategy formulation to eventual execution including direct investments (and divestments) in private & public companies, fund raising for various greenfield and brownfield as well performance monitoring of the investment portfolio against predetermined benchmarks and targets. Additionally, I contribute to organizational level strategy formulation to determine corporate and commercial strategies in achieving company objectives with regards to growth, profitability and market positioning.
Managed as one of Cyan's portfolio companies. Project is a turnaround story, as expected revenues and cash recoveries from sale of inventory did not materialize resulting in significant cash shortages and inability to bridge funding gap to complete remaining construction
Interacted with local management on a day-to-day basis to develop strategies and policies to expedite sales of real estate and recovery of long overdue receivables. Assisted management in implementation of agreed upon strategies
Reduced overheads and operating costs by one-third since assuming mandate for management of the company
Managed to sell entire inventory and recover over 75% of overdue receivables to transform project into a positive NPV investment, which was not the case at entry, expected to exit by the end of current year generating an estimated 50%+ IRR
- Co-leading the deal team for private equity investments from screening, evaluation, structuring and execution of selected investments to performance management and directorial level strategic oversight of investee companies
- Part of the Management Investment Committee comprising senior executives including the CEO, tasked with managing investment portfolio of c.US$ 30 million and approving various private and public equity investments
• Major apparel retail brand (turnaround investment; ongoing): Target is one of Pakistan’s premier clothing retail players with very strong brand image in the local market. Target is however a turnaround story as financial performance has lagged off-late with the company posting consistent losses in the previous years due to severe working capital constraints stemming from a reliance on 3rd party retailers rather than focus on revenue generation via own stores. Undertook a detailed analysis of all aspects of target’s operations to determine reasons underpinning restrained cash generation and low EBITDA margins. Comprehensively analyzed the local apparel retail sector to determine market positioning of target’s product portfolio compared to its competitors to determine product proposition and positioning of target going forward. Prepared a turnaround strategy comprising aggressive expansion of owned retail space by 6x over 5 years, restructuring of human resource functions and recovery of overdue receivables. Presented findings to the target group chairman as part of deal proposition
• Leading Pakistani logistics service provider (growth equity; ongoing): Evaluating a potential significant minority investment in a leading logistics service provider. Formulated a value generation strategy which involved aggressive expansion of fleet size on the back of changing market dynamics and sale of a Cyan owned warehouse to the investee company. Proposed and implemented a carve-out strategy whereby certain business units of a third company (also owned by the target sponsor) were separated and merged with the target company resulting in significant cost synergies
• Others:
o Potential significant minority equity investment in a mature technology services provider (growth equity investment, turnaround)
o Large-scale real estate project comprising 275, 000 square yards, project is a distressed asset with ongoing litigation issues (distressed asset/turnaround investment)
o Potential equity stake in a mid-sized pharma manufacturer (growth equity)
o Greenfield investment in a large motorsports facility (venture capital)
o Bridge financing for an electronic media business preparing for public listing (Cash-out deal)
o PIPE deals: (i) multi-national pharma player; (ii) Pakistan’s largest steel re-bar manufacturer; (iii) small-sized general insurance company; and (iv) mid-sized auto lubricant manufacturer
- Managed & spearheaded execution teams for the EY TAS M&A and Valuation & Business Modelling (V&BM) service lines
- Selected Transaction Experience:
• Privatisation of the Faisalabad Electric Supply Company (ongoing): Transaction is the first ever privatisation of a standalone electricity distribution company in Pakistan and is a deal worth over US$150 million. Developed Pakistan’s first ever multi-year self-regulating tariff structure for a standalone power distribution company by reviewing, in thorough detail, precedents in the region as well as developed economies in Europe and Latin America. Tariff structure was expected to be geared towards fostering private sector participation. Held in-depth discussions with the company’s executive management, regulators and other key public and private sector stakeholders to understand sector dynamics and key issues that may be addressed through a long-term self-regulating tariff structure. Formulated incentive mechanisms within the tariff framework to compensate company for reductions achieved in systemic and network losses and breakdowns, a major concern for the local power sector. Prepared a detailed financial model incorporating possible value upside to be derived from improvements in technical specs of the company as well as by expansion of grid network and increase in power demand. Presented findings to senior federal ministers including the country’s privatisation minister. Defended tariff in front of regulators in public hearings
• Privatisation of the Northern Power Generation Company (ongoing): Reviewed government plans and advised it on the post-privatisation power market structure including the transition from a single buyer model to a wholesale competitive electricity market. Prepared a detailed valuation model for the entity incorporating possible value upside resulting from improvements in plant efficiencies, heat rates, etc.
• Others:
o Sell-side M&A advisory to (i) a leading local fast food retail chain; (ii) mid-sized apparel retailer; (iii) a pharmaceutical manufacturer; and (iv) air charter service provider
o Valuation assignments for (i) a distressed microfinance bank; (ii) a distressed and under-capitalized Islamic insurance provider (Takaful); (iii) one of Pakistan’s largest financial conglomerates; (iv) a distressed agri-financier; (v) negotiation assistance to a mid-sized shipping line and logistics service provider; and (vi) Negotiation assistance and swap ratio computation for merger of two mid-sized equity brokerage firms
o Major wins: Appointed at EY to assist in developing its fledgling M&A advisory practice. Led the team that pitched and secured mandates for five major privatisation deals, for a cumulative deal flow in excess of US$ 1.5 billion amidst serious local and foreign advisor competition including bids by bulge bracket investment banks
- Extensive experience leading and working within transaction execution teams, with a focus on M&As and Capital Markets
- Selected Transaction Experience:
o Al Baraka Bank’s PKR 2 billion (US$ 20mn) Tier II (Basel III) Compliant Modaraba Sukuk Issue: Spearheaded the Transaction from origination to closure. Transaction is the first ever Sukuk issued by a bank and also the first ever unsecured Sukuk in Pakistan
o Pakistan Petroleum’s US$ 153 Million Secondary Public Offering of Government of Pakistan’s 5% stake: Offering is the largest domestic book building exercise undertaken in Pakistan; over US$ 300 million of subscription was received for the issue making it the largest in terms of subscriptions
o Attock Group’s Potential $150 Million Acquisition of Chevron Pakistan’s OMC Business: Developed detailed DCF valuation models for all three assets (Chevron’s OMC business and stakes in Pakistan Refinery & Pak Arab Pipeline Company), with focus on potential synergies for the conglomerate. Presented results to Group Chairman; resulted in the Company deciding to bid aggressively for all three companies on offer
o Bank of Punjab’s PKR 5 Billion (US$ 50mn) Rights Offering: Assisted in execution of the 100% Bank of Punjab Right issue at price of 9.5/share. Undertook a detailed analysis to determine optimal pricing and timing for issuance. Developed pitch books, investor presentations and presented recommendations to the bank’s Board of Directors. Right was successfully completed at market price despite the bank suffering from persistent losses accumulating to PKR 24.2bn over three years and preliminary investor feedback suggesting the need for at least a 30% discount to par