Muscat: Renaissance Services is in an advantaged stage to divest stake in National Training Institute (NTI) to an international firm, even as the company is considering two separate expressions of interest for divesting its media and communications division United Media Services. This is part of a major strategy to focus on core business, by selling non-core activities.
"National Training Institute (NTI) continues to grow and prosper as Oman's leading private sector training services provider. We are in the process of a potential divestment of NTI to a major international industry leader. The process is at an advanced stage and we expect to make a formal announcement in the near future. If successful, we believe this will be positive for Renaissance shareholders, for NTI, for the new owners and for Oman," stated Renaissance chairman Samir J. Fancy, in its latest annual report.
Renaissance Services has achieved a higher net profit of OMR3.1 million in 2012, against OMR2.3 million posted in the previous year. The company's revenue moved up to OMR257.3 million from OMR244.4 million during the period.
He also added that United Media Services continues to grow as it builds important and valuable brands in Oman and the region. The company secured a strategic alliance with Bloomberg that offers the opportunity to tap into the pan-Arabia advertising spend in the news and business magazine market over the coming years.
"We are considering two separate expressions of interest that may lead to divestment of the business. If successful, we believe this will be positive for Renaissance shareholders, for UMS and the new owners," the chairman added.
The chairman also noted that the potential buyers of these businesses are either large multi-national companies, or local groups of great substance. "We believe this is a compliment to the underlying quality of the assets that we have nurtured and developed under our stewardship."
Despite high demand and opportunity to create Omani employment, National Hospitality Institute (NHI) struggles commercially due to a system over-reliant on inconsistent government-funded training. The NHI board is considering de-listing the company in a manner that will protect the small shareholder; and give NHI greater flexibility to maximise the undoubted potential of the business in the long-term. National Hospitality Institute continues to deliver world class training. Renaissance also said that company's board is focused on the security and strength of the balance sheet, and the assurance of liquidity to meet obligations and grow core businesses. "We completed the first of two OMR125 million phases of refinancing in 2012.
We plan to complete phase two this year. We placed the first OMR29.65 million of an OMR43.16 million mandatory convertible bond (MCB) issue. We shall place the balance OMR13.51 million in 2013 when we are ready to deploy funds as equity for growth investments. We have made progress with an initiative to place a large portion of these treasury bonds with a major international financial institution."