Abu Dhabi-based Eshraq Investments PJSC announced that its accumulated losses narrowed marginally to AED 1.030 billion ($281 million) for the second quarter of 2022, as its acquisition of the Goldilocks Fund nears completion.

The company’s financial statements for the first half of 2022, published on Abu Dhabi Securities Exchange (ADX) showed that its accumulated losses for the first half of 2022 were down from AED 1.039 billion in the second half of 2021.

Net profits reached AED 7.29 million ($1.98 million) in the first half of 2022, down 59 percent year-on-year, which the company attributed to higher profit from its public equities portfolio last year compared to this year.

Gross profits from commercial operations were 151.7 percent higher than in the same period last year, Eshraq said, reaching AED 5 million for the second quarter of 2022 and AED 12.9 million for the full first half of the year. 

Total equity increased from AED 1.363 billion to AED 1.367 billion during the same period, financial results showed. 

Chairman Jassim Alseddiqi said the company is optimistic that the acquisition of the Goldilocks Fund, managed by Dubai-listed Shuaa Capital, will accelerate future growth opportunities and create long-term value for shareholders.

“We are working diligently to complete the acquisition of the Goldilocks Fund. In line with the mandate given by our shareholders, we have set the wheels in motion to strengthen the company’s financial performance and improve operational efficiency,” he said. 

Alseddiq, who also served as Goldilocks fund manager Shuaa Capital’s CEO until last month, when he became managing director and took a seat on the board, said Eshraq expects to give more updates in the coming weeks. 

The Goldilocks Fund acquisition deal was first announced in March and received shareholder approval at its AGM in April. 

Eshraq said it would fully acquire the shares of Goldilocks Investment Co Ltd, issuing new shares to Goldilocks investors in exchange for their shares in the fund.

(Writing by Imogen Lillywhite; editing by Seban Scaria)