Abu Dhabi Financial Group has struck a deal to acquire 10 per cent of Bahrain-based Falcon Cement Company from the Bahraini Islamic investment bank GFH Financial Group.
The deal, which was completed through Integrated Capital, the capital markets arm of the Emirati alternative investment company, involves ADFG acquiring a share in the US$120 million integrated cement plant which manufactures ordinary Portland cement and sulfate resistant cement.
ADFG said it was also interested in underwriting a potential IPO for the cement company, which has a production capacity of 350,000 tonnes per annum – something expected to go up to 850,000 tonnes by the end of 2016 after a second production line is added.
The deal comes a month after ADFG raised its stake in GFH from 7.4 to 10 per cent, making it the company’s largest shareholder.
“We have a keen interest in GFH Group’s business and are pleased to further our active involvement in the group through this landmark transaction,” said Jassim Alseddiqi, the ADFG chief executive.
ADFG has about US$3.2 billion in assets under management in the real estate and financial services sectors, including London’s police headquarters New Scotland Yard and 1 Palace Street, a luxury residential complex next to Buckingham Palace.
However, last year the company said that the fall in oil prices was prompting it to look closer to home for financially attractive investment opportunities.
GFH, which is listed in both Bahrain and Dubai, is among the most traded stocks on Dubai’s bourse. The company’s share price has increased by about 40 per cent since the start of the year and yesterday stood at 84 fils.
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