ABU DHABI / Emirates Business
Bahrain-based investment holding firm GFH Financial Group has signed a sale agreement with Integrated Capital (IC), the capital markets arm of Abu Dhabi Financial Group (ADFG), under which IC will acquire a 10 per cent stake in Bahrainâ€™s 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 ADFGâ€™s headquarters in Abu Dhabi, UAE.
IC has also expressed an interest in underwriting FCCâ€™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.
Alrayes said: â€œWe 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 otherâ€™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.â€
â€œWe have a keen interest in GFH Groupâ€™s business and are pleased to further our active involvement in the group through this landmark transaction,â€ said Alseddiqi.
â€œWith FCCâ€™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.â€ 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 tonnes per annum, which is expected to go up to 850,000 tonnes with the upcoming launch of a second production line by end of 2016. FCC is valued at $120 million.