Manama – MENA Herald: GFH Financial Group (GFH) today announced that it has signed a sale agreement with Integrated Capital (IC), the capital markets arm of the multi-billion-dollar alternative investment firm Abu Dhabi Financial Group (ADFG). Under the agreement, IC will acquire a 10% stake in Falcon Cement Company (FCC) from GFH. The signing ceremony took place between Hisham Alrayes, CEO of GFH and Vice Chairman of FCC, and Jassim Alseddiqi, Managing Director and CEO of ADFG and Chairman of Integrated Capital, at ADFG’s headquarters in Abu Dhabi, UAE.
IC has also expressed an interest in underwriting FCC’s proposed initial public offering (IPO) planned on the Bahrain Bourse later in 2016 which is subject to the receipt of various internal and regulatory approvals.
Commenting on the agreement, Hisham Alrayes, CEO of GFH, said: “We are delighted to welcome ADFG, via IC, as a shareholder in FCC. Going forward, GFH and its subsidiaries will look to build on this strategic partnership with ADFG, as both groups stand to benefit from each other’s expertise and strength. This agreement is part of our overall strategy to bring in new shareholders as we take FCC to the next phase of growth.”
Jassim Alseddiqi, CEO of ADFG, added: “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. With FCC’s strong market position and potential for future growth, following the completion of a second production line later in 2016, the company represents an attractive investment opportunity for ADFG. As a leading investment management and financial services group, ADFG will continue to work with GFH and FCC to further enhance the business, its valuation and financial returns to investors and all stakeholders.”
Established in 2008, FCC is a highly recognized integrated cement plant in Bahrain, manufacturing Ordinary Portland Cement (OPC) and Sulfate Resistant Cement (SRC). Currently, FCC has a production capacity of 350,000 tons per annum, which is expected to go up to 850,000 tons with the upcoming launch of a second production line by end of 2016. FCC is
valued at US$120 million.