Dubai Investments, the largest investment company listed on the Dubai Stock Exchange, has sold 40 percent of its stake in its private equity arm, M'Sharie, for AED400 million (€80 million; $109 million) to a group of regional investors. It is unclear what size stake Dubai Investments had in the private equity firm, which owns majority stakes in 14 companies and has interests in two more through joint ventures.
The private placement, which valued M'Sharie at AED1 billion, was oversubscribed by more than 100 percent, according to the firm. The investors that picked up an equity stake in M'Sharie include: United Arab Emirates-based National Bonds Corporation, Al Mal Capital, The First Investor and Al Arif Investment; Bahrain-based Gulf International Bank; and Saudi Arabia-based Abdulaziz Alajlan Sons and Ali Bin Hassan Dayekh. Gulf International Bank served as placement agent for the transaction.
“The private placement of M'Sharie is a strategic move aimed at establishing a strong presence for the company with the GCC [Gulf Cooperation Council] market and ensuring its continual growth by offering shareholdings to a select group of investors from the UAE and the GCC,”Khalid Kalban, chief executive of Dubai Investments, said.
M'Sharie was established in 1998 and owns companies in the Gulf region, including Emirates Extrusion Factory, Emirates Thermostone Company, Gulf Dynamic Switchgear Company and GulfMetal Craft. The firm focuses on medium to large companies in the Middle East region.
Following the placement, M'Sharie acquired a 51 percent stake in Anchor Allied for an undisclosed price.
Based in Sharjah, Anchor Allied manufactures lubricants, car care products, adhesive tapes, sealants and aerosol paints. The company currently has a turnover of AED250million ($109million; €80million), which the company said is expected to double in three years.