Jadwa Investment said to sell waste management firm in $500 mln deal

Jadwa Investment, one of the largest Saudi private investment banks, works on selling its investment in Jeddah-based Global Environmental Management Services (GEMS), Reuters reported Wednesday, citing sources.

The Saudi investment bank works with Citigroup on the deal that is expected to generate at least $500 million, sources added, although banking sources told Reuters at the time that the deal was valued at $300 million.

GEMS is a waste management company that collects, handles and disposes of petroleum and chemical waste and is also involved in wastewater treatment in the kingdom.

Jadwa acquired GEMS in 2014 from fund manager Ashmore Group and other local investors, Reuters mentioned.

Last year, Saudi Public Investment Fund said that is planning to set up a waste management company, which would help recycling around 85 percent of the waste and using it as a source of alternative energy in manufacturing.

Data from kingdom’s sovereign wealth fund revealed that Saudi Arabia recycles around 10 percent of recyclable waste, with the remaining 90 being directed to landfill sites.