Abu Dhabi-listed International Holding Company (IHC), a diversified investment holding company, has acquired 60 percent of privately-held Royal Horizon Holding, through its subsidiary, Zee Stores for 80 million UAE dirhams ($21 million).
The subsidiary, Zee Stores, is a specialist in trading food and non-food products and other services, while Royal Horizon Holding, is a supplier of soft commodities to government and private sector buyers in the UAE.
The acquisition, worth 80 million dirham, is divided into 40 million dirhams payable to shareholders and 40 million dirhams as a capital infusion to Royal Horizon, IHC said in a statement to ADX.
As of December 2020, Royal Horizon has total assets of 68 million dirhams and an annual turnover of 123 million dirhams.
Falal Ameen, CEO of Zee Stores, said: “The majority acquisition of Royal Horizon gives us an immediate entry into the retail food space, with stores in Ajman, RAK and Al Ain and a medium-term strategy of opening four more stores by 2025… We are also adding internationally recognized brands to our own growing roster of soft commodities and there will be numerous synergies in supply chain management that will give our earnings and profits a considerable long-term boost.”
Suhail Nekhaira Aida Suhail Al Efari, chairman at Royal Horizon, commented: “Royal Horizon has enjoyed considerable success in the UAE since 2008 and the majority acquisition by Zee Stores will support our expansion strategy, and gives us further reach for our products with their growing customer base.”
ADX-listed IHC and its subsidiaries announced several new investments, including Falcon CI IV LP, a fund that owns a stake in SpaceX, Elon Musk’s aerospace company.
(Reporting by Brinda Darasha; editing by Daniel Luiz))
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