Striking OIL

I wonder if the partners of Harney Westwood & Riegels ("HWR") could have imagined what would become of their little baby.

In the pre-computer age when international business was done on light-sensitive faxes, HWR set up a company incorporations arm, called Offshore Incorporations Inc."("OIL"). OIL capitalised on the surging Asian demand for IBC in the late 80's, particularly BVI IBCs.

Since then OIL has captured a huge market share of that business particularly in HK and Singapore. Much to the chagrin of others who can't do business at wholesale (or below wholesale) prices. Along the way, affliated companies like Acceptor and Credence Trust were set up or acquired.

Now today, OIL again will change hands to the group behind Vistra (IK Investment Partners, a PE group). Price tag around US$250M-300M.

http://www.reuters.com/article/2011/03/24/offshore-ikpartners-idUSL3E7EO1IS20110324
http://www.vistra.com/content/254

I hope that this merger creates more opportunities for trust people in the region but from a trust services perspective, I wouldn't lose any sleep over this.